Klarna US growth surges with GMV up 71% YoY

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Feb 22, 2023, 08:17 ET

The US is Klarna's largest market by revenue (Dec '22) with 8 million monthly active users of the Klarna App
More of the top 100 US retailers now partner with Klarna for marketing than for payments

NEW YORK, Feb. 22, 2023 /PRNewswire/ -- Klarna, the global leader in the generational shift away from credit cards, today announced strong momentum in the US, with a 71% YoY increase in GMV, while improving credit loss rates by 37%. Now with 34 million consumers in the US, the market has become Klarna's largest market by revenue as of December 2022. Klarna's US growth is fuelled by surging demand for the Klarna App, recently named Best Overall BNPL App of 2023 by Forbes, which now has over 8 million monthly active app users and 30 million downloads.

"We're thrilled at the growth and momentum we've achieved in the US, and are confident in our path towards profitability," said Sebastian Siemiatkowski, CEO, Klarna. "Consumers choose Klarna as a trusted, fair and more sustainable alternative to antiquated banks and high-cost credit options because we're solving problems for them everyday. Whether they're using the Klarna App for a smoother all-in-one shopping experience or checking out with our interest-free payment solutions, we're saving consumers time, money, and making Klarna essential in today's economy."

In addition to its popular suite of payment options enabling consumers to Pay Now, pay later, or pay over time, the Klarna App is a shopping destination of choice to 150 million consumers globally, covering all phases of the shopping journey from discovery to checkout.

Over the last year, Klarna has expanded and strengthened the app experience, launching new features including a rich and unbiased search and price comparison tool, dynamic and curated shoppable video content, and an upgraded CO2e tracker offering deeper insights into the environmental impact of consumer purchases. The Klarna App also offers popular features like money management tools, delivery tracking, digital receipts, price drop notifications and more, making it an indispensable, superior one-stop-shop for consumers' shopping needs.

Klarna's retailer network in the US continues to grow across multiple verticals including grocery, electronics, fashion and beauty, with leading partners such as Instacart, Tractor Supply Company, Groupon, Samsung, Etsy, and Fossil Group joining the company's network of over 500,000 retailers globally. Klarna is a strategic growth partner for retailers, offering payment options that increase consumer trust, loyalty, and conversion alongside unique marketing and advertising solutions that drive measurable growth. Today, more of the top 100 US retailers partner with Klarna for consumer acquisition and marketing (49 out of 100) than for payments.

"Klarna's marketing revenue is our fastest growing revenue stream, creating over 600 million leads for our retail partners to drive shared growth," said David Sandstrom, CMO, Klarna. "At Klarna, we understand that in today's fast-paced retail environment, simply offering consumers great products is no longer enough. Retailers need partners to help them cut through the noise and connect with consumers in new, exciting ways. That's where Klarna comes in."

Over the past year, Klarna has launched several new marketing solutions embraced by retailers worldwide, including a Creator Platform, enabling retailers to connect with over 500,000 creators to scale and optimize campaigns, and Virtual Shopping, a tool bringing the best of in-store to the online experience that is live today across brands including Levi's, Hugo Boss and Herman Miller. Additionally, with Klarna's latest shoppable video content, brands such as Haus Labs By Lady Gaga have seen average click-through rates up to 3x higher than other social media channels.

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SOURCE Klarna Bank AB (publ)