Klarna secures new investment from Visa to expand into new markets

Just over a week after obtaining its full banking licence in Sweden, fintech company Klarna has receiving a fresh investment from Visa.

No terms for the deal were revealed but according to a report from Bloomberg, the Swedish company will be issuing new equity and will be targeting new regions for its services.

According to Visa, the investment and resulting partnership will the help the payments giant reach more mobile customers in the Nordics. Jim McCarthy, executive vice president for innovation and strategic partnerships at Visa, said deals and partnership like this are “core to our growth”. On the other side, Klarna said the deal will help the company break into other markets.

Klarna has typically been a fintech company and an alternative to banking. However with its new banking licence, it will be able to offer traditional banking services like loans. When announced last week, Klarna said it was building new products in line with this licence but it’s unclear if or how Visa will tie in with this.

Klarna has over $370 million in VC funding to date. The Visa investment is the second investment this month, having raised an undisclosed amount from a fashion industry tycoon in early June.

Follow the developments in the technology world. What would you like us to deliver to you?
Your subscription registration has been successfully created.