Invest
New buy now, pay later player on the block
Klarna Australia has officially launched today, bringing one of the world’s biggest digital payment providers to our shores.

New buy now, pay later player on the block
Klarna Australia has officially launched today, bringing one of the world’s biggest digital payment providers to our shores.

With more than 85 million customers already using the service around the world, the entrance of the payment service to the Australian buy now, pay later market was announced through several channels, including an ASX announcement from the Commonwealth Bank of Australia.
The Commonwealth Bank of Australia has said its customers “will be able to benefit immediately from using one of the world’s largest and most innovative buy now, pay later online shopping services”, but non-CBA consumers will also be able to utilise the payment method.
The bank initially invested $US100 million into Klarna, but it has since invested a further $US200 million in Klarna Group at the same valuation.
The aim of this, according to CBA, is to “increase strategic alignment, bring additional rights and gain exposure to Klarna’s international growth”.
The $US300 million total investment brings CBA’s shareholding of the international fintech group to 5.5 per cent from an initial 1.8 per cent stake.
CEO of CBA Matt Comyn has said that the bank’s partnership with Klarna “will further enhance the customer experience in our leading banking app and address the rapidly growing demand among consumers for new payment options”.
“In particular, it allows us to build on our leading technology to deliver the very best payment services for our customers and merchants in Australia, on platforms which are safe, secure and easy to use,” he added.
“By partnering with Klarna, we are bringing together our market-leading digital technology, merchant relationships and strong customer network with Klarna’s innovative payments technology and integrated shopping experience for the benefit of CBA customers and many more Australian consumers.”
The CBA statement indicated that each party will jointly fund and have 50:50 ownership rights to Klarna’s Australian and New Zealand business.
CBA is also retaining a right to partner with Klarna in Indonesia.
Calling it an exciting day for Klarna, CBA and Australia as a whole, Klarna Group’s CEO, Sebastian Siemiatkowski, said: “We have already developed a strong working relationship with CBA, and we look forward to providing even more opportunities together for our customers in the coming months and years.”
About the author

About the author


Spending
Where are Aussies looking to spend their money in 2021?
Australians are increasing their spending intentions, with travel and entertainment set to be the big winners, a new report has revealed. ...Read more

Spending
Toyota returns $18m in JobKeeper payments
An unexpected surge in sales in 2020 has inspired car manufacturer Toyota to write an $18 million check to the government, returning the amount it received in JobKeeper subsidies and touting the move...Read more

Spending
Aussies spend up big during pre-Christmas sales
Consumers have taken advantage of new freedoms post-lockdown and pre-Christmas discounts as retail sales soared in November, official figures have revealed. ...Read more

Spending
Aussies unlikely to splash the cash following pandemic
Australian consumers are likely to cut back on discretionary items in 2021 with many re-evaluating their spending habits following the COVID-19 pandemic, new research has revealed. ...Read more

Spending
‘It’s back’: SA unveils second Great State Voucher
South Australian residences or those planning to travel to the state could save up to $150 as the government continues its support for the local tourism sector. ...Read more

Spending
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” prem...Read more

Spending
Young Aussies pressured to buy love this Christmas
Younger Australians are likely to spend more this Christmas as they equate expensive gifts with love, a researcher has found. ...Read more

Spending
Buying local this Christmas could raise over $1bn for small business
New research suggests that Australians could deliver an estimated $1.12 billion to the small-business sector this Christmas just by buying one more gift from their favourite local business. ...Read more

Spending
Where are Aussies looking to spend their money in 2021?
Australians are increasing their spending intentions, with travel and entertainment set to be the big winners, a new report has revealed. ...Read more

Spending
Toyota returns $18m in JobKeeper payments
An unexpected surge in sales in 2020 has inspired car manufacturer Toyota to write an $18 million check to the government, returning the amount it received in JobKeeper subsidies and touting the move...Read more

Spending
Aussies spend up big during pre-Christmas sales
Consumers have taken advantage of new freedoms post-lockdown and pre-Christmas discounts as retail sales soared in November, official figures have revealed. ...Read more

Spending
Aussies unlikely to splash the cash following pandemic
Australian consumers are likely to cut back on discretionary items in 2021 with many re-evaluating their spending habits following the COVID-19 pandemic, new research has revealed. ...Read more

Spending
‘It’s back’: SA unveils second Great State Voucher
South Australian residences or those planning to travel to the state could save up to $150 as the government continues its support for the local tourism sector. ...Read more

Spending
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” prem...Read more

Spending
Young Aussies pressured to buy love this Christmas
Younger Australians are likely to spend more this Christmas as they equate expensive gifts with love, a researcher has found. ...Read more

Spending
Buying local this Christmas could raise over $1bn for small business
New research suggests that Australians could deliver an estimated $1.12 billion to the small-business sector this Christmas just by buying one more gift from their favourite local business. ...Read more