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Klarna sells Checkout business

Klarna is selling its online checkout business to a consortium of investors for around €485 million in order to remove the conflict of interest it created with partners such as Adyen and Stripe.

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Klarna sells Checkout business

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The consortium, led by BLQ Invest CEO Kamjar Hajabdolahi, will take over Klarna Checkout in October.

Launched in 2012, Klarna Checkout works directly with merchants to help them offer its BNPL payment options. The business is successful in the Nordics, with a 20% market share, rising to 40% in Sweden.

However, the company has increasingly focused on working with payment service providers such as Stripe as distribution partners as it competes with the likes of Apple Pay and PayPal for prominence within their ecosystems.

According to documents seen by Bloomberg: “Klarna is looking to divest the Klarna Checkout to remove the friction and completely focus on working with its distribution channels. Thus, creating a simple relationship to all partners without the PSP vs Checkout conflict.”

Sebastian Siemiatkowski, CEO, Klarna, says: “Klarna Checkout is very dear to me, and the impact it’s had on Klarna’s journey is immense. 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.”

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