Klarna launches in Australia to take on Zip and AfterPay
(30 January 2020 – Australia) Swedish buy now, pay later firm Klarna has officially launched in Australia, backed by a further $200 million investment from Commonwealth Bank of Australia.
CBA customers will be the first to try out the online shopping service through direct integration with CBA's mobile banking app.
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.
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