Klarna Secures Scalable Funding in $26bn Deal to Drive U.S. Pay in 4 Growth

Klarna, the global digital bank and flexible payments provider, announced the execution of a multi-year forward flow agreement with Nelnet, a U.S.-based financial services and investment firm, to support the continued expansion of Klarna’s Pay in 4 product in the United States.

The agreement enables Klarna to sell newly originated, short-term, interest-free Pay in 4 receivables to Nelnet on a rolling basis. Over the life of the program, up to $26 billion in total payment volumes are expected to be sold. The transaction delivers scalable and efficient funding to power Klarna’s U.S. growth, while enhancing balance sheet flexibility and supporting long-term capital strategy.

“This is a landmark transaction for Klarna in the U.S.” said Niclas Neglén, CFO at Klarna. “Our partnership with Nelnet allows us to scale a core product responsibly, while continuing to deliver smooth, interest-free payment experiences to millions of consumers.”

The forward flow structure offers predictable, off-balance-sheet funding and underscores Klarna’s ability to structure and execute large-scale capital markets transactions. Klarna will continue to originate and service all receivables under the program, ensuring continuity and quality of experience for both consumers and merchant partners.

“Nelnet is thrilled to work with Klarna on this important transaction and support their continued success,” said Judd Deppisch, Chief Investment Officer of Nelnet Financial Services. “This strategic partnership leverages our expertise and financial strength to invest in attractive cash-flowing assets while supporting Klarna’s valuable offering to U.S. consumers, with the support of our lending partners.”