After a troubled start, BNPL giant Klarna has experienced strong momentum in the US market, with a 71% year-over-year growth in GMV and improved credit loss rates by 37%.
There are now 34 million consumers using Klarna in the US, making this Klarna’s largest market by revenue as of December 2022.
It attributes this growth to a surge in demand for the Klarna App, which was recently dubbed the Best Overall BNPL App of 2023 by Forbes. The app has over eight million monthly active app users.
Klarna has released a selection of new features for its app over the past year. These features include an unbiased search and price comparison tool, dynamic and curated shoppable video content and an upgraded CO2e tracker offering insights into the environmental impact of consumer purchases.
Other services available through the app include money management tools, delivery tracking, digital receipts, price drop notifications and more.
Speaking on the growth, Klarna CEO Sebastian Siemiatkowski said, “We’re thrilled at the growth and momentum we’ve achieved in the US, and are confident in our path towards profitability.
“Consumers choose Klarna as a trusted, fair and more sustainable alternative to antiquated banks and high-cost credit options because we’re solving problems for them everyday. Whether they’re using the Klarna App for a smoother all-in-one shopping experience or checking out with our interest-free payment solutions, we’re saving consumers time, money, and making Klarna essential in today’s economy.”
Klarna is a strategic growth partner for retailers, offering payment options that help boost trust, loyalty and conversion alongside marketing and advertising solutions that drive measurable growth, it said. The firm is partnered with Instacart, Tractor Supply Company, Groupon, Samsung, Etsy and Fossil Group.
Over the past year, Klarna has released several marketing solutions, including its Creator Platform. This tool enables retailers to connect with over 500,000 creators to scale and optimise campaigns.
This growth in the US is against the trend for Klarna in Australia. In November, the BNPL giant announced its Australian division had haemorrhaged $56m in losses in 2021.
Last year, Klarna’s biggest shock was its downround which saw its valuation drop by 85%. It dropped from $46bn to $6.7bn. However, the promise of the US market can be seen back then, with the company earmarking the $800m equity raise to support its growth in the US.
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