Klarna Sells Checkout Solution For $520 Million To Resolve Processor Disputes
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Klarna has sold its online payment service, Klarna Checkout (KCO), for $520 million to a group of investors led by Kamjar Hajabdolahi, BLQ Invest’s Chief Executive Officer and founding partner.
Klarna announced in a press release on Monday (June 24) that the purchasers will take over KCO on October 1, and Klarna’s payment options will still be available during checkout.
Klarna Seeks To Provide Flexible Payment Options Through Various Service Providers
The release revealed that selling KCO will let Klarna focus on its flexible payment options, which it provides with many service providers. Klarna has faced problems by offering its payment choices directly to stores through KCO and sharing them through payment service providers (PSPs) like Stripe and Adyen.
By selling KCO, Klarna removes that competition and conflict with PSPs and allows KCO to expand under new ownership. Since 2021, Klarna has yet to actively develop KCO because it was focused on its partnerships with PSPs.
Sebastian Siemiatkowski, Klarna’s Chief Executive Officer and co-founder, expressed excitement about Klarna’s ongoing program. He stated that he is very happy that Klarna is finding a new home with carefully chosen owners to continue creating great value for their merchant partners. Klarna is excited to work closely with these owners as they start the next phase for KCO.
Klarna Aims To Alleviate Competition With Payment Service Providers (PSPs)
According to the release, having new committed management will enable the KCO to expand. Hajabdolahi and his BLQ Invest are distinguished for their “Purchase and Build” approach. Hajabdolahi further stated that his team is excited to get Klarna Checkout, and their goal is to build on the strong foundation established by Klarna.
The firm also wants to take KCO to the next level, constantly improving the product to meet the requirements of its merchant partners and shape the future of eCommerce.
KCO was founded in 2012 in Northern Europe. Today, it holds a 40% market share in Sweden and 20% across the Nordics. It is usable worldwide and offers a user experience aimed at boosting sales.
Klarna announced in May that it experienced faster revenue growth in the first quarter, with its total revenue increasing by 29%, surpassing the 13% growth from the same quarter last year.
Earlier this year, Klarna hired investment banks for a US IPO with a valuation of $20 billion. The company aims to go public as early as the third quarter of 2024. Klarna was valued at $45.6 billion in 2021. However, the value later dropped to $6.7 billion due to high interest rates.
