Klarna is a global payments network and digital bank built around buy now, pay later (BNPL). Consumers use Klarna at checkout — online or in-store — to split purchases into installments or defer payment, almost always interest-free. Klarna extends short-term credit to consumers on behalf of merchants, charging the merchant a fee rather than interest from the consumer. Klarna serves roughly 118 million active consumers and 966,000 merchants across 26 countries, with mature markets in Europe and rapid growth in the U.S. Klarna's three core payment products are Pay Later (interest-free installments or deferred payment), Fair Financing (longer-term loans of 3–48 months where consumers pay interest), and Pay in Full (immediate debit-style payment). Beyond payments, Klarna is expanding into broader banking services — including a physical and virtual Klarna Card, consumer deposits and savings accounts, a digital wallet, and subscription tiers — with the goal of deepening consumer relationships and growing revenue per user. Klarna generates revenue primarily through merchant fees, consumer interest income on Fair Financing products, and advertising. Klarna funds roughly 95% of its lending through consumer deposits via its Swedish banking license, a low-cost funding source. Klarna distributes to merchants through a direct sales force and, increasingly, through partnerships with major payment service providers like Stripe, Adyen, and Worldpay, where Klarna aims to be a default payment option rather than an add-on. Klarna also uses AI extensively, with an AI assistant handling 80% of customer service chats and ML models powering real-time credit underwriting.