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On the heels of itsIPO filing , Swedish fintech giant Klarna announced on Monday that it willexclusively providebuy now , pay tardy loans for Walmart . The partnership with Walmart is one that rival Affirm hadpreviously owned .
Klarna will bring home the bacon the loan to Walmart customers through OnePay , a fintech startup in which it owns a majority stake and is also backed by Ribbit Capital . Klarna will take over providing the loanword “ subsequently this twelvemonth , ” it said in a statement .
San Francisco - based Affirm ’s stocktook a hiton the news , down 8 % by former good afternoon on Monday , trading at just over $ 46 .
The two companies have been rivals for years , although Affirm is more focused on the United States . Itwent public in 2021and recently announced that it hasachieved $ 80 millionin GAAP final income . Klarna , after sufferinga monolithic snow to its valuation , has made a counter of sorts and reported a net profit of $ 21 million in 2024 , a huge swing from a exit in 2023 of -$244 million .
Last September Affirm chief operating officer and carbon monoxide - father Max Levchin toldPaymentsDivethat he wanted to differentiate his troupe from challenger , include Klarna . One way that it is doing that , he differentiate a technology conference last year , is to focus on earning revenue from case-by-case dealing . Klarna and others have pushed bringing in marketing receipts , he asserted . However , a Klarna spokesperson disputed that , telling the publishing that “ the volume of Klarna ’s tax income comes from transactions , with a low portion drawn from marketing . ”
Levchin went on to say that Affirm does not monetise proceedings through advertising or marketing .
“ I ’m not criticizing — it ’s not my space to decide those are high-risk businesses , ” he was quoted as enounce . “ But I bed ours , and ours is built around the approximation that , at last , every transaction needs to make sense financially . ”
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Klarna ’s stretch is more global than Affirm ’s but it has made a big push into the U.S. , tell TechCrunch last April that the U.S. and Germanyrepresented its largest marketsbut that the U.S. was “ get ahead all the time and is often largest on a quarterly basis . ”
land Walmart as a pardner will no doubt only increase Klarna ’s front in the U.S. The retail merchant is the world ’s largest by taxation — cover $ 441.8 billion in the U.S. alone last yr .
newsperson ’s note : A statistic about how much Walmart ’s U.S. volume would boost Klarna ’s entire GMV was removed spot - publication per the company ’s request .
