Fintech startup Klarna secures major payment partnership with Uber ahead of highly anticipated IPO

In a move set to redefine the landscape of digital transactions, Klarna has sealed a game-changing global partnership with ride-hailing behemoth Uber. The Swedish fintech giant disclosed that this collaboration will empower seamless payments across both Uber and Uber Eats platforms.

Klarna, in a statement on Wednesday, revealed that this landmark deal will introduce its payment solutions across key markets such as the U.S., Germany, and Sweden. However, the financial specifics of this agreement remain undisclosed as Klarna opted to keep the terms under wraps.

This alliance stands as a significant coup for Klarna, coming hot on the heels of speculation surrounding its imminent initial public offering (IPO), with murmurs hinting at a valuation soaring past the $20 billion mark. The integration of Klarna’s “Pay Now” feature within Uber and Uber Eats apps in select regions is set to revolutionize the checkout experience, enabling users to settle transactions swiftly with just a single click.

Moreover, Klarna will unveil an enticing payment alternative for Uber patrons in Sweden and Germany, permitting them to consolidate purchases into interest-free monthly payments deducted directly from their salaries.

“Consumers can Pay Now quickly and securely in full, which already accounts for over one third of Klarna’s global volumes, and more easily manage their finances in one place,” Siemiatkowski said, according to a report from CNBC.

Curiously, Klarna has decided against introducing its famed installment-based buy now, pay later schemes on Uber’s platforms, focusing solely on immediate and monthly payment options.

Sebastian Siemiatkowski, Klarna’s CEO and Co-Founder, hailed the partnership as a monumental milestone for the company, emphasizing the convenience and security offered by the “Pay Now” feature, which currently accounts for a substantial portion of Klarna’s global transactions.

Klarna was founded in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson with the mission to streamline online shopping through its buy now, pay later model. With over 12 million monthly active users worldwide and a staggering 55,000 daily downloads, Klarna has surged ahead of competitors, solidifying its position as a unicorn startup and a premier provider of buy now, pay later services.

We covered Klarna in November when the startup filed the paperwork for its highly-anticipated IPO. The Stockholm, Sweden-based Klarna also initiated a legal entity restructuring to establish a new holding company in the U.K.

Klarna Founders