Klarna is taking on global fintech giants, such as Revolut, and will launch its own cryptocurrency based on blockchain technology next year.
It will be called Klarna USD and is a so-called stablecoin, with a fixed exchange rate against the US dollar. The arrangement means that Klarna will need to have one dollar on its balance sheet for every Klarna USD.
“Faster and cheaper for everyone”
The technology is currently being tested ahead of launch. The currency is based on Tempo, a blockchain developed specifically for payments by companies Stripe and Paradigm.
With its own currency, Klarna aims for simpler and faster international payments, and hopes that the effect on the company's costs will be significant.
“With 114 million customers and $112 billion in annual transaction volume, Klarna has the scale to transform payments globally,” says Sebastian Siemiatkowski, CEO and co-founder.
He adds that the ambition is to “challenge the old networks and make payments both faster and cheaper for everyone.”
Siemiatkowski was previously an outspoken skeptic of cryptocurrencies. But earlier this year – ahead of the fall listing on the New York Stock Exchange – he changed his mind.
"Crypto is now fast, cheap, secure and scalable enough. This is the beginning of Klarna's journey in crypto, and I look forward to continuing to shape the future of payments together with Stripe and Tempo," he says in the press release.
Fees of over a trillion
According to Klarna, fees for cross-border payments totaling $120 billion (1.15 trillion SEK) are paid annually around the world.
It is currently unclear whether and if so when consumers will be able to start using Klarna USD directly when purchasing from foreign merchants.
Eight major European banks, including SEB and Danske Bank, recently joined forces to launch a similar cryptocurrency, but with a euro peg. SEB hopes to start using it “in the first quarter of 2027.”
