Klarna to Integrate Crypto: CEO Seeks Community Input for New Features

Klarna, the Swedish fintech powerhouse known for its “Buy Now, Pay Later” service, is preparing to make its move into the cryptocurrency sector, according to CEO and co-founder Sebastian Siemiatkowski. The company, which has remained a notable outsider in the crypto space until now, is finally embracing digital assets, marking a significant shift in its strategy.

Siemiatkowski made the announcement on X (formerly Twitter) on Saturday, expressing excitement about Klarna’s future in crypto. He playfully acknowledged that Klarna was one of the last major fintech companies to adopt cryptocurrency, but emphasized that “someone had to be last,” calling this milestone a significant one in its own right.

Founded in 2005 by Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, Klarna has grown to become a global leader in the Buy Now, Pay Later (BNPL) sector. The company currently serves 85 million customers and collaborates with over 500,000 merchants, processing more than $100 billion in transaction volume annually. Of this, 30% comes from debit card spending.

As Klarna moves forward with its plans for crypto integration, Siemiatkowski is seeking input from the cryptocurrency community on how best to implement these new features. In his post, he invited crypto enthusiasts to share their ideas, stating, “I have some ideas but keen to hear more!” He further committed to incorporating community feedback into Klarna’s crypto plans and promised to follow up on all suggestions.

Several crypto experts have already shared their thoughts. Nikhil Chandhok, Circle’s Chief Product and Technology Officer, offered a suggestion to Klarna, proposing that the company could facilitate merchant transactions using stablecoins, which would enable faster processing and improved cash flow. He also recommended integrating crypto wallets, allowing users to make direct crypto payments for Klarna purchases. In the long term, he suggested that Klarna could even establish a credit marketplace by settling merchant payments on a public blockchain.

Raghav Gulati, CEO of CoinList, also weighed in, recommending Klarna support payments using stablecoins on low-cost networks like Solana. He further proposed that Klarna hold a small Bitcoin position in its treasury as a hedge against inflation.

Siemiatkowski, whose views on crypto have evolved over time, has previously expressed caution about the volatility and risks associated with digital currencies. In an interview with CNBC in April 2021, he acknowledged the potential of cryptocurrencies but raised concerns about the risks of retail investors entering the market without adequate protection, especially in the absence of proper regulation.

While Klarna’s move into crypto has been slow compared to some of its competitors, it is not alone in exploring this space. Affirm, a key player in the BNPL market in the United States, launched the “Affirm Crypto Program” in late 2021, allowing users to buy and sell Bitcoin. However, Affirm discontinued the program in early 2023.

As Klarna moves forward with its crypto integration, it remains to be seen how the company will navigate the complexities of the digital asset space, but it is clear that the company is taking steps to adapt to this emerging market. Siemiatkowski has promised more updates to come as Klarna continues to explore the possibilities of cryptocurrency.