Klarna, the AI-powered payments and commerce network, crossed 11 million active customers and has doubled its merchant base in a year to 60,000, launching with names like Argos, eBay, Eurostar and John Lewis. The UK is now Klarna’s third-biggest market globally, with revenue up 30% in 2024 alone. It’s a major moment for the Swedish fintech giant as it cements its place in the British retail scene.
Since launching in the UK ten years ago, Klarna has helped shoppers avoid nearly half a billion pounds in interest by offering a simpler, fairer alternative to credit cards. As well as avoiding interest charges, BNPL customers have lower outstanding balances, which they clear more quickly, than credit card users: the average outstanding BNPL balance was £150 compared with £1,295 for credit card.
In fact, the growing use of BNPL is helping consumers ditch higher-risk forms of credit such as credit cards altogether. A study by research consultancy Capital Economics found that 1 in every 2 BNPL customers had reduced their credit card usage after discovering BNPL.
“Eleven million UK customers is a huge moment for us,” said Raji Behal, Head of Southern and Western Europe, UK & Ireland. “We’ve gone from challenger to champion — and we’re just getting started. With more retailers, smarter tools and even better experiences, we’re putting power, and money, back into the hands of shoppers.”
Klarna now works with nearly 60,000 UK retailers — almost double the number from just a year ago. Globally, Klarna serves 93 million active consumers and more than 675,000 merchants. The company offers a range of services including flexible payments, delivery tracking and spending insights, all designed to give shoppers more control.
