Klarna has announced the sale of its online checkout solution, Klarna Checkout (KCO), for $520 million to a group of investors led by Kamjar Hajabdolahi, CEO and founding partner of BLQ Invest. This move aims to eliminate conflicts with payment service providers (PSPs) such as Adyen and Stripe by divesting KCO, allowing Klarna to focus on its flexible payment methods. The new ownership, effective Oct. 1, is expected to spur KCO’s growth, benefiting from Hajabdolahi’s ‘Buy and Build’ approach. Klarna’s CEO Sebastian Siemiatkowski expressed satisfaction with the deal, emphasizing that the transaction will enable both companies to pursue their strategic goals more effectively. KCO, launched in 2012, holds a significant market share in Northern Europe and has shown strong potential for global application. The sale was driven by Klarna’s need to manage its merchant relationships more efficiently without internal competition between its direct merchant services and PSP distribution channels. Klarna has previously reported strong revenue growth, indicating a positive trajectory for focusing on core payment services.

Financial Services, E-commerce, Private Equity,Sweden, Northern Europe, Global

https://www.raptorgroup.com/news/klarna-sells-checkout-solution-for-520-million-to-eliminate-processor-conflicts/