Klarna has additionally signed a cope with Google to make use of its Nano Banana, Gemini, and Veo 3 instruments. Sandstrom stated AI is now embedded in day by day work, from analyzing buyer evaluations to designing advert campaigns. The corporate has continued hiring AI-focused roles like immediate engineers at the same time as different fintechs reduce. Sandstrom stated the corporate is growing an AI-powered procuring assistant that may discover merchandise and full purchases on behalf of customers.
“The extra satisfied about AI the much less we’re measuring the affect of it,” he stated.
Market challenges persist
However Klarna’s public market debut comes as its core installment funds enterprise faces strain. Within the U.S., it trails Affirm by about $4 billion in cost quantity, in keeping with EMARKETER.
“The Swedish fintech’s vital mistake stateside was its delay in issuing a BNPL-enabled debit card,” stated Katherine Smith, funds analyst at EMARKETER. Affirm launched its “purchase now, pay later” debit card two years in the past, which helped cement its lead within the U.S. market. The cardboard has been central to Affirm’s in-store push, the place spending jumped 187% within the fourth quarter of 2024. Klarna solely started piloting its personal card in June.
Internationally, Klarna stays the stronger participant, reporting $25.3 billion in gross merchandise quantity—greater than double Affirm’s $10.4 billion. It has additionally scored partnerships with Walmart, DoorDash and eBay, giving it attain Affirm has struggled to duplicate.
Nonetheless, Smith stated card-linked installment plans from conventional banks are an excellent larger risk. Bank card issuers like American Categorical, Chase, and Citi can supply richer rewards than fintechs, which function on thinner margins. Klarna has tried to counter with cash-back affords and a partnership with rewards startup Nift, however these perks pale compared, she added.
Sandstrom stated Klarna is carving out a special path, positioning itself with a extra consumer-friendly model that resonates with girls, in distinction to what he described because the “male, transactional” strategy of rival fintechs.
