Klarna, the global digital bank and flexible payments provider, has completed a $518 million Significant Risk Transfer, freeing up capital to support strong consumer demand for its products.
Read More on Fintech : Global Fintech Interview with Rob Young, Managing Director – UK at InDebted
The 3-year agreement supports $12 billion in additional lending and forms part of Klarna’s wider capital-efficiency program, which pairs SRTs with forward-flow and warehouse financing to support growth in a capital-lighter way.
The transaction is the second SRT Klarna has completed with the investor, reflecting continued strong institutional demand for exposure to Klarna’s industry-leading lending.
“Demand for our products continues to grow and transactions like this let us fund it efficiently, while an existing investor returning for a second securitization is a real vote of confidence in the quality of our underwriting,” Klarna Chief Financial Officer Niclas Neglén said.
Klarna is a global digital bank and flexible payments provider. With over 119 million global active Klarna users and 3.4 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. More than one million retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange.
Catch more Fintech Insights : The AI Shift in Fraud: Why Banks Need a New Playbook
[To share your insights with us, please write to psen@itechseries.com ]
