Klarna reports ‘rapid growth’ in Canada

Ellie Duncan
02 Aug 2023

Buy now, pay later (BNPL) provider Klarna has established a network of more than 640,000 active consumers in Canada, less than 18 months after its launch.

In an update, Klarna revealed it has processed over two million orders since landing in Canada in February 2022.

Klarna has also launched new retail partnerships with brands including Ssense and Airbnb, and has secured distribution partnerships with Adyen, Stripe and WooCommerce.

“We are thrilled by the response and rapid growth Klarna is seeing in Canada with over 640,000 active consumers,” said Steven Clarke, head of Canada at Klarna.

“This momentum speaks to the demand that we’re seeing among Canadians for superior, more flexible alternatives to high-cost, interest-bearing traditional credit options, and Klarna is leading the way.”

Klarna’s interest-free ‘Pay in 4’ service is already live in Canada, and it has added its ‘Pay Now’ option, allowing Canadian consumers to pay in full immediately, or pay-over-time when selecting Klarna at a retailer’s checkout.

The launch of the Klarna Express Button in Canada, which pre-fills consumer data at checkout, has already been implemented by GameStop and L’Oreal Canada.

“With the introduction of Pay Now, which enables immediate and full payment while shopping at our partner retailers, as well as the Klarna Express Button, we’re further enhancing our offering alongside our interest-free ‘Pay in 4’ credit option,” added Clarke.

“This combination provides consumers with the range of choices, heightened control, and flexibility they are looking for.”

Earlier this year, Klarna launched its affiliate marketing publisher program in Canada, so that brands can “tap into Klarna’s extensive network of millions of loyal consumers through premium placements in the Klarna app”, as well as CRM campaigns.

Clarke added: “Klarna’s strategic partnerships with esteemed brands have also solidified our position in the Canadian market.”

This week, Klarna confirmed to Open Banking Expo a change to its sub-brand Klarna Kosma, having launched the business unit in early 2022 as an umbrella for all its Open Banking activities.

A spokesperson has confirmed that due to the success of the launch, Klarna Kosma will now be the brand for Klarna’s core API/aggregation offer, while its other Open Banking products, such as account-to-account payments, will be brought under the Klarna brand.