Klarna, the global AI-powered payments network and shopping assistant, has announced positive Q3 2023 results in the US market, marking its fourth consecutive quarter of gross profit.
The company achieved a 46% year-on-year (YoY) increase in gross merchandise volume (GMV) and a 28% improvement in credit loss rates.
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While best-known for transparent, interest-free Buy Now, Pay Later (BNPL) services, Klarna has evolved its product range to cover all shopping phases, “from discovery to checkout,” and offers consumers payment options including Pay Now, Pay Later and Pay Over Time.
Adoption and product suite drive growth
Driven by consumer and retailer demand, Klarna’s AI-driven product suite has seen substantial adoption.
The company now reaches over 37 million consumers, reflecting a 32% YoY growth, and has 26,000 retail partners including Macy’s, Nike, Airbnb, StubHub and Instacart, showcasing a 38% YoY growth.
Klarna CEO Sebastian Siemiatkowski said in a statement: “Klarna’s strength in the US is fuelled by growing demand for our fair and flexible payments products, with over 99% of our US consumers finding it helpful for avoiding higher risk, interest-bearing credit options.”
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By GlobalDataInvestment in AI
The company’s growth is also attributed to the popularity of its expanding AI-driven services, notably the Klarna App, which now has more than 7 million users in the US. This makes it the top BNPL app in the US.
Klarna’s investment in AI has further propelled its growth. Recent initiatives, such as the AI shopping lens and discovery shopping feed, enhance the user experience.
Additional features such as in-store barcode scanning, a gift card store and sustainability-focused tools demonstrate Klarna’s commitment to innovation and conscious shopping.
Expanding retailer network
Klarna serves as a partner for retailers, offering payment options that support consumer trust, loyalty and conversion. The company’s US retailer network continues to expand across a range of sectors, with new partners such as StubHub, Timex and Cole Haan.
79 of the top 100 US retailers currently collaborate with Klarna for payments, consumer acquisition and marketing.
