Klarna Group (KLAR) Citi's 14th Annual FinTech Conference summary

Business model and differentiation

• Serves 114 million consumers and 850,000 merchants globally, with strong year-over-year growth in both segments.

• Focuses on being an everyday spending partner, not just a buy now, pay later provider, with a diversified product mix including pay later, Fair Financing, and pay in full.

• Average order value is $104 with a 40-day loan duration and high transaction frequency, especially in highly penetrated markets like Sweden and Germany.

• Expanding from online to offline transactions, with 70% of Klarna Card transactions in Sweden now offline.

• Differentiates through global reach and strong consumer brand, supporting merchants' international growth.

Consumer health and economic environment

• Reports healthy consumer activity across all markets, with broad-based usage and no notable weakness in lower-income demographics.

• Short-term, high-frequency transactions provide consumers with more control and financial flexibility.

• Secular trends in digital payments and constant transaction-level underwriting help manage risk and adapt to economic swings.

Partnerships and payment service providers (PSPs)

• PSPs now account for roughly 50% of volume, with rapid expansion and record merchant sign-ups, including 235,000 new merchants in the last year.

• Strategic integrations with Stripe, Apple Pay, and others are ramping up, with more PSP partnerships launching through 2026.

• Fair Financing is now available to 151,000 merchants, supporting multi-year growth potential.