Swedish Payments Group Klarna Sets Sights on Crypto Ahead of Public Listing

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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February 10, 2025 02:30 EST

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Swedish payments firm Klarna is now preparing to enter the crypto market ahead of its upcoming public listing.

On Sunday, CEO Sebastian Siemiatkowski announced that the firm would “embrace crypto,” acknowledging that the company is among the last major fintech players to step into the digital asset space. He described the move as a significant milestone for Klarna’s expansion strategy.

Siemiatkowski also reached out to the crypto community, asking for suggestions on how it should integrate crypto into its ecosystem. He noted the firm’s scale, saying that the firm serves 85m users worldwide, processes $100b in transaction volume, supports over 500 million merchants and has issued more than 1m cards.

The CEO noted that many people suggested full compliance as a major advantage. He pointed out that this marks a shift in perspective compared to a few years ago.

Expanding Payments Ecosystem Includes Crypto Ambitions

Klarna, best known for its “Buy Now, Pay Later” (BNPL) services, enables consumers to spread out payments over time without immediate interest charges.

Beyond BNPL, Klarna provides a range of payment solutions for online shopping, including direct payments, installment plans, and pay-after-delivery options. The company also offers payment processing, financing and banking services, ensuring smoother and more flexible transactions between retailers and consumers.

By integrating cryptocurrency payment options, Klarna could tap into a tech-savvy audience already engaged with digital assets. This move could help expand its user base and position Klarna at the forefront of fintech innovation.

Klarna’s Crypto Foray and IPO Plans Shape Its Future

Klarna has a track record of embracing cutting-edge financial solutions, including past ventures into cryptocurrency. In 2021, the company partnered with Swedish crypto broker Safello to integrate its open banking services into crypto trading. This collaboration enabled users to buy cryptocurrencies directly from their bank accounts, marking Klarna’s first step into the digital asset space.

Klarna filed for an IPO with the US SEC in November, but the company has yet to announce the listing date or exchange venue.

According to the Financial Times, Klarna is aiming for an April IPO with a $15b valuation, slightly higher than the $14.6b estimate Bloomberg reported earlier. If successful, this would mark one of the largest fintech public listings in recent years, positioning Klarna as a major player in the evolving digital payments sector.

Meanwhile, Klarna has been dealing with internal leadership tensions.

A Sifted report suggests a growing divide between CEO Siemiatkowski and co-founder Victor Jacobsson. At the end of last year, Klarna’s shareholders voted to remove board member Mikael Walther, a close ally of Jacobsson. The move signaled potential power shifts within the company’s senior management, adding another layer of complexity to its IPO ambitions.