Klarna’s Bold Move: Embracing Cryptocurrency Services

February 9, 2025

Key Insights

• Klarna aims to incorporate crypto services into its platform.
• CEO Sebastian Siemiatkowski is gathering community feedback on crypto integration.

Embracing the Future: Klarna’s Crypto Journey

The Swedish fintech powerhouse, Klarna, is poised to make a significant leap into the world of digital assets. CEO and co-founder Sebastian Siemiatkowski announced on Saturday that the company will be embracing cryptocurrency. “Alright,I concede. Klarna and I are ready to welcome crypto! More details to follow,” he shared on X. Despite his playful acknowledgment that this post might receive limited attention, Siemiatkowski believes it marks a historic moment.

A Late but Strategic Move

Siemiatkowski humorously noted that Klarna is among the last major players in the fintech sector to venture into the crypto space. “someone had to be the last, and that’s a milestone in its own right,” he remarked. Founded in 2005 by Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, Klarna has grown to become a global leader in the buy-now-pay-later industry, serving 85 million customers and partnering with over 500,000 merchants. The company processes an remarkable $100 billion in transaction volume annually, with 30% attributed to debit card spending.

Seeking Community Wisdom

As Klarna prepares to integrate crypto services, Siemiatkowski is actively seeking input from the crypto community. “All crypto enthusiasts, please share your thoughts on how we should proceed,” he invited. “I have some ideas,but I’m eager to hear more!” He assured that the suggestions would keep him busy for a while and promised to follow up on all the ideas shared.

Expert Insights and Collaborations

Sequoia Capital’s Andrew Reed introduced Siemiatkowski to three entrepreneurs who convinced him of crypto’s potential. Nikhil Chandhok, Circle’s Chief Product and Technology Officer, suggested that Klarna could settle merchant transactions using stablecoins for faster processing and better cash flow. Chandhok also proposed integrating crypto wallets to facilitate direct crypto payments for Klarna purchases. “In the long run, settling transactions on a public chain could enable a credit marketplace for merchants,” chandhok explained.

Stablecoins and Strategic Positions

CoinList CEO Raghav Gulati recommended enabling payments with stablecoins on cost-effective networks like Solana and suggested that Klarna hold a small Bitcoin position in its treasury as a hedge against inflation. Siemiatkowski confirmed that he would provide updates on Klarna’s crypto initiatives.

Evolution of Perspective

siemiatkowski’s earlier reservations about Bitcoin and crypto assets appear to be easing. Although he previously recognized their potential, he cautioned against promoting these assets as investment products without adequate protection. “Cryptocurrencies hold a lot of promise,but I’m concerned about the risks,especially when everyday people start investing,” Siemiatkowski said in a CNBC interview in April 2021.

Competitive Landscape

Klarna’s main competitor, affirm, had previously ventured into the crypto space. In late 2021, Affirm, in collaboration with NYDIG, launched the “Affirm Crypto Program,” allowing customers to trade Bitcoin. However, the program was discontinued in early 2023. As Klarna steps into the crypto arena, it will be captivating to see how it differentiates itself and navigates the evolving landscape.