Klarna Announces Strategic Partnership with Nelnet for U.S. Growth
Klarna obtains substantial financing in a $26 billion agreement to fuel expansion of its U.S. 'Pay in 4' services
Klarna, the leading global payments solution provider, has entered into a significant partnership with Nelnet, a leading financial services company. This strategic alliance aims to power Klarna's U.S. growth and invest in attractive cash-flowing assets.
Under the multi-year forward flow agreement, Klarna will sell newly originated, short-term, interest-free Pay in 4 receivables to Nelnet on a rolling basis. This deal enhances Klarna's balance sheet flexibility and supports its long-term capital strategy.
Niclas Neglén, CFO at Klarna, hailed the partnership as a landmark transaction for Klarna in the U.S. He stated, "This partnership with Nelnet is a testament to our commitment to providing smooth, interest-free payment experiences to millions of consumers while ensuring the continuity and quality of experience for both consumers and merchant partners."
The forward flow structure provides Klarna with predictable, off-balance-sheet funding. It also highlights Klarna's ability to structure and execute large-scale capital markets transactions. The deal is expected to continue delivering scalable and efficient funding over the life of the program.
Jeffrey R. Noordhoek, the CEO (Vorstandsvorsitzender) of Nelnet, expressed his excitement about supporting Klarna's continued success. Judd Deppisch, Chief Investment Officer of Nelnet Financial Services, echoed his sentiments, stating, "We are thrilled to work with Klarna on this important transaction."
The strategic partnership between Klarna and Nelnet leverages Nelnet's expertise and financial strength. It also includes lending partners, ensuring a robust infrastructure for Klarna's Pay in 4 product expansion in the United States.
Nelnet is equally enthusiastic about the partnership. They are thrilled to work with Klarna and are confident that this partnership will deliver scalable and efficient funding to power Klarna's U.S. growth. Over the life of the program, up to $26 billion in total payment volumes are expected to be sold.
The forward flow structure ensures continuity and quality of experience for both consumers and merchant partners. The partnership with Nelnet continues to deliver smooth, interest-free payment experiences to millions of consumers. This strategic partnership between Klarna and Nelnet supports Klarna's offering to U.S. consumers and strengthens Klarna's position in the U.S. market.
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