Klarna, a Swedish fintech giant, announced it will exclusively provide buy now, pay later loans for Walmart. This partnership comes after rival Affirm had previously owned this service. Klarna’s loan provision will be through its subsidiary OnePay, which it owns a majority stake in.
The news led to Affirm’s stock price dropping 8% on Monday. The two companies have been competitors for years, but Affirm focuses more on the US market. In contrast, Klarna has expanded globally and reported a net profit of $21 million in 2024 after suffering significant losses in previous years.
Affirm CEO Max Levchin stated that his company is differentiating itself by focusing on earning revenue from individual transactions. However, a Klarna spokesperson disputed this, saying its bulk of revenue comes from transactions, not marketing. The difference highlights how each company approaches monetization.
The partnership with Walmart will further expand Klarna’s presence in the US market, where it reports its largest markets. This move is expected to boost Klarna’s total transaction volume significantly.
Source: https://techcrunch.com/2025/03/17/klarna-nabs-walmart-away-from-affirm-and-boosts-its-ipo-prospects