Klarna, the AI-powered payments and commerce network, crossed 11 million active customers and has doubled its merchant base in a year “to 60,000, launching with names like Argos, eBay, Eurostar and John Lewis.”
The UK is now Klarna’s third-biggest market globally, “with revenue up 30% in 2024 alone.”
Since launching in the UK ten years ago, Klarna has reportedly helped consumers avoid “nearly half a billion pounds in interest by offering a simpler, fairer alternative to credit cards.”
As well as avoiding interest charges, BNPL customers have lower outstanding balances, which they “clear more quickly, than credit card users: the average outstanding BNPL balance was £150 compared with £1,295 for credit card.”
In fact, the growing use of BNPL is “helping consumers ditch higher-risk forms of credit such as credit cards altogether.”
A study by research consultancy Capital Economics found “that 1 in every 2 BNPL customers had reduced their credit card usage after discovering BNPL.”
Klarna now works with nearly “60,000 UK retailers — almost double the number from just a year ago.”
Globally, Klarna serves 93 million active consumers and “more than 675,000 merchants.”
The company offers a range of services including “flexible payments, delivery tracking and spending insights, all designed to give shoppers more control.”
In another recent update, it was noted that eBay, a global commerce firm that connects buyers and sellers around the world, announced the expansion of its global partnership with Klarna.
eBay is rolling out Klarna’s flexible payments options to eBay’s U.S. shoppers.
The expanded partnership reflects eBay’s “continued investment in bringing more choice, flexibility, and control to buyers while enhancing affordability across key categories.”
Avritti Khandurie Mittal, VP & General Manager of Global Payments and Financial Services at eBay said:
“We’ve been very pleased with the positive customer and business impact Klarna has delivered in some of our key markets including the U.K. and Europe, and we’re now excited to give millions of U.S. shoppers more flexible and affordable ways to pay on eBay.”
Since launching in the U.K., Austria, France, Italy, the Netherlands and Spain in December 2024, eBay users are “splitting up payments to access higher-ticket items – like a pre-loved luxury watch – in a more affordable, manageable way. Electronics, fashion, and collectibles are some of the most popular categories where eBay shoppers are paying with Klarna.”
Consumers can pay for eligible eBay purchases in the U.S. using Klarna’s flexible payments options including Pay in 4, which “allows customers to split their purchase into four interest-free payments as well as Financing, which offers flexible payment plans for larger purchases.”
Klarna also recently rolled out its resell feature to U.S. consumers who use eBay.
Users can list past Klarna purchases on eBay—”complete with pre-filled descriptions and images—making it easier than ever to extend the life of their items.”
Since launching in December 2024, there have been “over half a million eBay listings generated through Klarna’s app.”
Whether it’s a refurbished phone or a pre-loved designer bag, the feature promotes “conscious consumption and supports a more circular economy.”
David Sykes, Chief Commercial Officer at Klarna said:
“We look forward to expanding our partnership to give millions of U.S. shoppers greater flexibility to purchase what they love — from rare collectibles, to that vintage coat they’ve been eyeing — whenever, however, and in smarter, more personalized ways.”
The launch reinforces eBay’s continued investments toward “driving growth and unlocking efficiencies through its global Payments and Financial Services business.”
For Klarna, this partnership underscores that it’s not just partnering with the U.S. retailers — it’s becoming “a part of how they design, build, and evolve their customer payment experiences and push sustainable commerce forward.”
