As it expands its business from strictly payments to a shopper assistance approach, Klarna reported that its third-quarter results in the United States include its fourth consecutive period of gross profit, a 46% year-over-year advance in GMV and a 28% improvement in credit loss rates.
The growth has been fueled by increasing adoption and demand for Klarna’s increasingly diverse, AI-driven product suite of services among U.S. consumers and retailers, the company asserted. Today, Klarna reaches more than 37 million consumers, representing a 32% year-over-year growth, and 26,000 retail partners, a 38% growth rate versus the year earlier, with banners it works with, including Macy’s, Nike, Airbnb, StubHub and Instacart.
Today, 79 of the top 100 U.S. retailers work with Klarna for payments, consumer acquisition and marketing, according to the company.
A pioneer in buy now pay later services, Klarna continues to evolve its range of products to cover all phases of the shopping journey, from discovery to checkout, the company noted. Klarna offers U.S. consumers a suite of flexible payment options, enabling them to pay now, pay later, or pay over time. It also provides several shopping services, including the Klarna App, which has become a go-to shopping destination for over seven million active monthly users.
The growth and evolution of Klarna in the U.S. has been advanced by the company’s investment in AI. In October, Klarna announced several new features as part of its Fall Spotlight initiative, including an in-app AI shopping lens that lets consumers snap, search and shop anything around them. Before that launch, Klarna rolled out an AI-powered discovery shopping feed in the Klarna app which recommends products based on personal interests. Additional new Klarna products and features available to U.S. consumers include in-store barcode scanning for instant access to detailed product information on over 10 million items, a Gift Card Store in collaboration with Blackhawk Network and new tools enabling consumers to shop more consciously with the environment in mind, including sustainability certification filters and a conscious shopping dashboard.
“Even in a challenging and evolving economic environment, Klarna’s success in the U.S. continues, marked by double-digit YOY GMV growth in Q3, 37 million-plus consumers, and a rapidly expanding retailer network,” said Sebastian Siemiatkowski, CEO, Klarna, in detailing the company’s growth. “Klarna’s strength in the U.S. is fuelled by growing demand for our fair and flexible payments products, with over 99% of our U.S. consumers finding it helpful for avoiding higher risk, interest-bearing credit options.”
