Klarna picks up $200 million investment from CBA; launches in Australia

Klarna picks up $200 million investment from CBA; launches in Australia

Buy now, pay later outfit Klarna has officially launched in Australia, backed by a further $200 million investment from Commonwealth Bank of Australia.

Commonwealth Bank customers will be the first to try out the online shopping service through direct integration with CBA's mobile banking app.

Purchased items will show up in the CommBank app and customers will also be able to take advantage of price drop and out of stock notifications directly from Klarna.

Klarna will also be available to non-CBA consumers.

CBA chief executive officer Matt Comyn says: “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.”

In August last year, Klarna raised $460 million in an equity funding round, including a $100 million investment from CBA. The new funding from the Australia bank brings additional rights and exposure to Klarna’s international growth.

The total funding raises the bank's shareholding in the Swedish fintech to 5.5% from its initial 1.8% stake.

CBA and Klarna will jointly fund and have 50:50 ownership rights to Klarna’s Australian and New Zealand business. CBA also retains a right to partner with Klarna in Indonesia.

Comments: (1)

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India 03 February, 2020, 10:011 like 1 like

Apprciate CBA to go higher on value chain of payments offering it's customer leaverging innovation from Startups.

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