Klarna's Strategic Shift: Aiming for Survival in the Digital Banking Arena

Klarna is accelerating its transformation into a digital bank, akin to Revolut or Chime, as it prepares for a second attempt at a U.S. IPO, reports the Financial Times.

The "buy now, pay later" company's first IPO attempt in April was paused due to market turmoil following Donald Trump's tariff announcements.

In recent weeks, the company has launched several products to broaden its business model in its shift towards becoming a digital bank like Revolut or Chime. This comes amid increased pressure on the company's resilience in a potential scenario where consumers lose purchasing power.

– Klarna's strategic shift is not just about growth. It's about survival in a market where they no longer have a defensible position, says Liam Evans, CEO of PwC in Canada, to the Financial Times.

New Products Launched

Earlier in June, Klarna introduced a payment card in the U.S. in partnership with Visa. The card allows buyers to pay immediately instead of splitting the purchase and paying later. The company is also following in the footsteps of Revolut and Nubank by launching a mobile subscription through AT&T.

Klarna has previously launched similar products in Germany. Now, these products have been introduced to the American market.