Klarna Strengthens Deposits and Debit Strategy as GMV Reaches $33.7 Billion
Klarna Strengthens Deposits and Debit Strategy as GMV Reaches $33.7 Billion
Klarna reported strong first-quarter growth in 2026, showing that the company is moving beyond its well-known buy now, pay later model and building a wider payments ecosystem. According to PYMNTS, Klarnaâs revenue rose 44% year over year to $1 billion, while gross merchandise volume increased 33% to $33.7 billion.
Strong Growth Across Revenue, GMV, and Users
The companyâs latest results show clear momentum in consumer payments. Klarnaâs active consumer base grew 21% to 119 million, while its merchant network expanded 49% to 1.1 million. These numbers suggest that both shoppers and retailers are using Klarna more often as part of everyday commerce.
While Klarna is still widely known for installment payments, the company is now positioning itself as a broader financial services platform. Its strategy includes debit cards, deposits, point-of-sale financing, and deeper integrations with major payment and commerce platforms.
U.S. Market Remains a Key Growth Driver
The United States played a major role in Klarnaâs quarterly performance. Klarnaâs U.S. gross merchandise volume rose 39% to $7.1 billion, making up 21% of total GMV. Revenue from the U.S. market also increased 67% to $399 million.
This growth reflects Klarnaâs stronger presence among major online retailers and its expanding role in flexible payments. The company said it is now available with most of the top 100 online retailers in the U.S., helping it reach more shoppers at checkout.
Fair Financing Becomes a Major Expansion Area
Klarnaâs fair financing product, which supports longer-term installment payments at the point of sale, recorded $4.1 billion in GMV during the quarter. That figure was up 138% year over year. The number of merchants offering the product also grew sharply, rising to 225,000 from 103,000 a year earlier.
This shows that Klarna is not only focused on short-term pay-later transactions. It is also building a larger financing business for purchases that may require more time to repay. However, the company emphasized that many users of longer-term financing are existing customers with proven repayment histories.
Debit Card Usage Gains Momentum
Klarnaâs card business is becoming another important part of its strategy. The company said its card product passed 5 million users globally during the quarter. Management also noted that debit usage has been stronger than expected.
This matters because debit card activity can turn Klarna from a checkout option into a daily spending tool. Card users reportedly transact about three times more often than non-card users, which gives Klarna more chances to build customer loyalty and generate revenue over time.
Deposits Support Klarnaâs Funding Base
Another key part of Klarnaâs growth story is consumer deposits. The company said 91% of its funding base now comes from consumer deposits, with an average duration of 270 days.
This deposit base gives Klarna a more stable source of funding for its lending and payment products. In simple terms, everyday spending helps bring users into Klarnaâs ecosystem, while deposits help support the companyâs financing activities.
Credit Quality Remains Stable
Klarna also reported steady credit performance despite wider concerns about consumer finances. The company said 30-day-plus delinquency levels in its pay-later portfolio remained stable, while delinquency rates in fair financing improved from the previous quarter. Its earnings presentation showed charge card equivalent delinquency rates of 1.6% for accounts more than 30 days past due and 0.9% for accounts more than 60 days past due.
Executives pointed to Klarnaâs short-duration lending structure and transaction-level underwriting as reasons for the stable performance. This means Klarna reviews risk at the purchase level rather than only relying on broad customer profiles.
Klarna Looks Toward AI-Driven Commerce
Klarna is also preparing for a future where artificial intelligence plays a larger role in shopping. Management described Klarna as a possible payment layer for AI-powered shopping experiences, including integrations connected to Google Pay inside Gemini and Klarnaâs position within Stripe Link.
This strategy could help Klarna stay relevant as online shopping becomes more automated. If consumers increasingly use AI tools to compare products and complete purchases, payment providers will need to be present inside those digital journeys.
Full-Year Guidance Reaffirmed
Looking ahead, Klarna reaffirmed its full-year outlook. The company expects GMV above $155 billion and adjusted operating income above 6.9% of revenue. Shares rose 16% in early trading after the results were reported.
Why This News Matters
Klarnaâs latest results show that the company is trying to become more than a buy now, pay later provider. Its growth in deposits, debit cards, merchant partnerships, and fair financing points to a wider ambition: becoming a full payments and financial services platform for everyday spending.
For retailers, Klarnaâs growth may offer more ways to increase checkout conversion and customer loyalty. For consumers, it means more payment choices across shopping categories, from groceries and subscriptions to travel and larger purchases. For investors, the results highlight a business that is expanding quickly while trying to keep credit risk under control.
Overall, Klarnaâs first-quarter performance shows a company moving deeper into daily financial habits. The combination of strong GMV growth, rising U.S. revenue, expanding debit usage, and a larger deposit base suggests Klarna is building a more connected financial ecosystem for the next phase of digital commerce.
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