Klarna's CEO plans crypto integration ahead of IPO

Swedish fintech giant Klarna, widely recognised for its "buy now, pay later" services, is planning to integrate cryptocurrency into its platform.

CEO Sebastian Siemiatkowski announced the move on February 8, seeking feedback from the crypto community on how to effectively implement the integration.

This decision aligns with Klarna’s preparations for its upcoming initial public offering (IPO) in the U.S. in April, with an estimated valuation of $15 billion.

Klarna, which serves 85 million users globally and processes $100 billion in transaction volume annually, has partnerships with over 500,000 merchants.

Approximately 30% of its transaction volume is processed via debit cards.

Siemiatkowski’s announcement represents a notable shift from his previous skepticism towards cryptocurrency.

He admitted that Klarna is behind competitors such as PayPal and Revolut, both of which already offer crypto services.

Industry members and crypto leaders have shared suggestions for Klarna’s crypto integration.

Circle's Nikhil Chandhok proposed the use of stablecoins for quicker merchant settlements and integrating crypto wallets for direct payments.

CoinList CEO Raghav Gulati recommended allowing payments via stablecoins on low-cost networks like Solana and holding Bitcoin in Klarna’s treasury as an inflation hedge.

Frank Schuil of Safello AB suggested combining Klarna’s BNPL model with crypto processing.

This move by Klarna follows a broader trend of fintech companies integrating digital currencies.

Klarna has also been expanding partnerships with firms such as Stripe and WooCommerce to enhance its offerings.