The company was previously in talks with investors to raise money at a valuation of USD 50 billion but saw some investors backtrack owing to volatile market conditions and a funding slowdown.
BNPL companies have been facing competition from traditional lenders and firms like PayPal, according to the press release. While regulators are also ramping up the pressure, with the UK government in 2021 saying it would start regulating BNPL products to protect consumers.
Klarna makes money by charging merchants who use its services. The company processed transactions worth USD 80 billion in 2021, up from 42% in 2020. The company provides online financial services such as payments for online storefronts and direct payments, along with post-purchase payments.
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