From CNBC: 2024-04-24 13:18:00

Klarna unveils new design with AI algorithms to help users find items. The company partners with Uber for payment options in the U.S., Germany, and Sweden, introducing “Pay Now” and salary deduction feature. CEO calls deal a significant milestone. No installment-based plans offered. Financial terms not disclosed.

Uber deal signifies major win for Klarna as rumored IPO approaches, potentially valuing the company at over $20 billion. Klarna saw valuation drop in 2022 but rebounded with a monthly subscription plan in the U.S. Company reported first profit in four years in Q3 2023 after credit loss cuts.

Klarna is part of the “buy now, pay later” trend, popular for online shopping. Concerns arise about affordability and overspending. UK and EU move to regulate industry, while Klarna defends model as cheaper than credit cards. U.S. financial bureau plans oversight for “buy now, pay later” lenders.

Read more: Klarna scores payment deal with Uber ahead of anticipated IPO