Uber just signed a big deal with Klarna

Klarna is in focus this morning after announcing a major deal with Uber Technologies Inc (NYSE: UBER). 

Details of Klarna – Uber agreement

Users in the United States, Sweden, and Germany will now be able to use Klarna as a mode of payment on Uber and Uber Eats apps. 

Interestingly, though, the most popular buy now, pay later (BNPL) services of Klarna will not be available on Uber. Users will be able to use it only for immediate and monthly payments for now.

Sebastian Siemiatkowski – the chief executive of Klarna dubbed the agreement with Uber a significant milestone in a press release on Wednesday.

Consumers can Pay Now quickly and securely in full, which already accounts for over one-third of Klarna’s global volumes, and more easily manage their finances in one place.

Klarna is considering an IPO in 2024

Note that Klarna refrained from divulging the financial terms of its agreement with Uber Technology on Wednesday. 

The announcement arrives at a time when the fintech firm is rumoured to be getting ready for an initial public offering (IPO) in the third quarter of this year, as per a recent report from Bloomberg. 

The IPO could value Klarna at over $20 billion – well below $45 billion in valuation that it hit in 2021 but up materially from a low of $6.7 billion in 2022. 

Klarna swung to its first quarterly profit since the pandemic in the third quarter of last year after cutting credit losses by a whopping 56%.