Global digital bank and payments provider Klarna has announced that it has secured a EUR 1.4 billion structured financing facility with Santander.
Following this announcement, the initiative represents an important part of Klarna’s broader strategy to diversify funding resources and support its continued growth and development.
In addition, officials of the company mentioned that the strategy will represent a key step for product launches and market expansion, as Klarna will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
More information on Klarna’s strategy of development
The new initiative comes days after Klarna announced the agreement to sell its US BNPL loans to Nelnet in order to support the continued expansion of the product in the United States. The strategy was expected to enable Klarna to sell newly originated, short-term, secure, and interest-free Pay in 4 receivables to Nelnet on a rolling basis. At the same time, Nelnet was given the possibility to purchase up to USD 26 billion of Klarna’s US Pay in 4 loans on an ongoing basis over the life of the program in a multi-year, forward flow agreement.
Furthermore, with this initiative, up to USD 26 billion in total payment volumes were expected to be sold. The transaction aimed to give the company the possibility to deliver scalable and efficient funding to power Klarna’s growth across the US, while improving balance sheet flexibility and supporting long-term capital strategy as well.
Earlier in August, Klarna announced plans to integrate its instalment payment solutions into Chrome’s autofill feature for eligible US customers. The update was set to allow those making purchases over USD 35 to access the company’s interest-free ‘Pay in 4’ option directly within the browser. For larger transactions, monthly financing plans will be available, with some starting at 0% APR.
