Klarna, the AI-powered global payments network and shopping assistant, has signed an agreement with a subsidiary of funds advised by Elliott Advisors (UK) Limited for the on-going sale of “substantially all” of Klarna’s short-term, interest free product receivables in the United Kingdom.
Klarna will still own all consumer-facing activities, including underwriting and servicing.
Over the past three years, Klarna has been building an efficient and robust capital offloading platform to support its compounding network growth.
This partnership represents the latest addition to these platform capabilities, allowing Klarna to fund over £30B of volume through the life of the transaction.
Klarna has grown steadily in the United Kingdom, with ten million British consumers having used the service in the past 12 months.
The number of retailers offering Klarna in the UK “leapt by 33% in the past year to over 40,000.”
In another key update, Klarna noted that its service is now available to users checking out on Apple Pay “online and in apps with iPhone and iPad on iOS 18 and iPadOS 18 or later.”
Eligible Apple Pay users in the U.S. and UK will reportedly have access to Klarna’s flexible payment offerings, including pay later in three or four installments with no interest or over longer periods with APRs starting at 0%.
As noted in the update, the global expansion will continue with Canada slated to launch in the coming months.
Klarna’s Pay in 4 payment offering gives consumers 4 fixed repayments for purchases “between $35-$2,000, all interest-free.”
Financing is available for higher ticket items with “monthly repayments made over a longer period of time starting at 0% APR.”
This integration makes the world of flexible payment options even more accessible as consumers can make purchases using Klarna directly on an iPhone or iPad, in app and online with Apple Pay.
Eligible users can select ‘Other Cards & Pay Later Options’ when checking out on Apple Pay with an iPhone or iPad, and then select Klarna to “access the Klarna products that are available to them.”
Once they agree to the terms, they are able to double-click the side button and authenticate with Face ID or Touch ID to “confirm their purchase.”
Before approving the purchase, Klarna will make “a new lending decision, using its industry-leading underwriting checks.”
This decision will reportedly “not impact” a customers’ credit score.
With this integration, users are now able to take advantage of “all the privacy and security features they love about Apple Pay.”
As with all Apple Pay purchases, when a user pays with Klarna, Apple claims that it does “not keep a record of a user’s transaction history.”
Last month, Klarna became an official reseller with the launch of “Apple from Klarna”, a storefront in the Klarna app and Klarna.com where US customers can purchase Apple products “using flexible payment options.”
With 85 million active consumers, Klarna is the global BNPL or buy now pay later provider in the world.
Klarna’s commerce network continues to grow, driving towards being available in “every wallet and checkout.”
Klarna aims to offer smart shoppers everywhere a “fairer alternative” to traditional credit cards.