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.”
