Klarna reports ‘phenomenal growth’ across Europe led by UK

Ellie Duncan
23 Aug 2023

Buy now, pay later (BNPL) provider Klarna has reported “strong growth” across its European markets, led by the UK, at a time when “other, smaller players dial back their commitment” or exit entirely.

Gross merchandise value (GMV) – which is the value of goods sold through Klarna – grew 26% in the UK and rose 14% across Europe year-on-year in the second quarter of the year.

It attributed UK growth to expansion into new sectors, following the announcement of partnerships with luxury brand Liberty and Paultons Park, which is the home of Peppa Pig World.

Official figures from Klarna also showed that the average age of its customers is trending up and now sits at 36, compared to 33 in 2021.

The global payments network has launched in 11 European markets since 2020, most recently in Romania and Czech Republic, and has “amassed” 100 million European consumers.

Other BNPL providers, including Australia-based Zip and Clearpay, have withdrawn from the UK and mainland Europe.

Klarna CEO Sebastian Siemiatkowski

Sebastian Siemiatkowski, Klarna’s chief executive officer, said it is “fantastic to see this sustained, phenomenal growth across Europe”.

“While other, smaller players dial back their commitment or leave the region altogether, we’re doubling down, further strengthening our position in Europe, as well as the US,” he added.

Klarna has partnered with more than 470,000 merchants in Europe, with TIER, MandMDirect and Deichmann among its more recent multi-market deals, delivering in excess of 280 million clicks from European Klarna customers to merchants, so far this year.

Klarna recently reported similarly “rapid growth” in Canada, since entering the market in February 2022.

Earlier this month, it reported having established a network of more than 640,000 active consumers in Canada, less than 18 months after its launch.