Klarna, the AI-powered global payments network and shopping assistant, now has 18 million UK customers and over 31,000 merchants.

The company has announced strong growth across Europe, with gross merchandise value (GMV) up 14 per cent year-on-year ion Q2 – outpacing e-commerce, which grew by just 1 per cent in the same period.

Since 2020, Klarna has launched in 11 European markets, most recently Romania and Czech Republic.

Klarna has amassed 100 million European consumers and has partnered with over 470,000 merchants, with recent new multi-market deals including TIER, MandMDirect and Deichmann.

Sebastian Siemiatkowski, CEO, Klarna, said: “It’s fantastic to see this sustained, phenomenal growth across Europe, with GMV up 14 per cent in the region.

“While other, smaller players dial back their commitment or leave the region altogether, we’re doubling down, further strengthening our position in Europe, as well as the US.”

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Best known for its Buy Now Pay Later products, Klarna’s instant debit option, Pay Now has been rolled out across all European markets, accounting for around a third of all transactions.

This means consumers now have the choice to pay in full immediately or pay over time – all without interest – when selecting Klarna at a retailers’ checkout.

Retailers, in turn, benefit from offering consumers a seamless checkout experience and giving their customers more choice according to their needs.

Klarna is a driving force behind the shift from search-based to recommendation-based shopping. The Klarna app is now powered by an AI-product recommendation engine

A recent Klarna survey revealed 74 per cent of European customers use Klarna at least once a month, with trust coming out as the top reason for why they choose to shop with Klarna, followed by ease of payment.

Since 2005 Klarna has been on a mission to accelerate commerce with consumer needs at the heart of it.

With over 150 million global active users and 2 million transactions per day, Klarna’s fair, sustainable and AI-powered payment and shopping solutions are revolutionising the way people shop and pay online.

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More than 500,000 global retailers integrate Klarna’s innovative technology and marketing solutions to drive growth and loyalty, including H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, and Nike.