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Klarna Sells Checkout Solution for $520 Million to Eliminate Processor Conflicts

Klarna

Klarna sold its online checkout solution, Klarna Checkout (KCO), for $520 million to a group of investors led by BLQ Invest CEO and founding partner Kamjar Hajabdolahi.

The buyers will assume ownership of KCO on Oct. 1, and Klarna’s payment methods will continue to be offered in the checkout, Klarna said in a Monday (June 24) press release.

Selling KCO will allow Klarna to concentrate on its flexible payment methods, which it offers in conjunction with multiple service providers, according to the release.

Klarna has run into conflicts by offering its payment methods directly to merchants through KCO and via distribution through payment service providers (PSPs) like Adyen and Stripe, Bloomberg reported Monday.

By divesting itself of KCO, it eliminates that competition and friction with PSPs and allows KCO to grow under new ownership, according to the report. Klarna has not actively built KCO since 2021 because it was focused on its relationships with PSPs.

In the company’s press release, Klarna CEO and co-founder Sebastian Siemiatkowski said: “I’m so pleased it’s finding a new home, with owners who are carefully handpicked to continue to create outstanding value for our merchant partners. I look forward to working closely with them as they establish the next phase for KCO.”

Having new, dedicated management will allow the KCO business to grow, per the release. Hajabdolahi and his BLQ Invest are known for their “Buy and Build” strategy.

“We are thrilled to acquire Klarna Checkout, and our ambition is to build on the solid foundation established by Klarna and take KCO to the next level, continuously evolving the product to meet the needs of our merchant partners and drive the future of eCommerce,” Hajabdolahi said in the release.

KCO was launched in 2012 in Northern Europe, according to the release. Today, it has a market share of 40% in Sweden and 20% across the Nordics; is available for global use; and features a user experience designed for conversion.

Klarna reported in May that it achieved accelerated revenue growth during the first quarter, with its 29% increase in total revenue outpacing the 13% rise it saw in the same quarter a year earlier.

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