Stockholm-based Klarna’s partnership with Uber was announced a day after the company said it would bring BNPL financing to U.S. customers of travel company Expedia Group. However, there are currently no plans to bring BNPL loans to Uber customers, a Klarna spokesperson confirmed in an email. 

The company did say that it plans to expand through similar partnerships, calling them a “massive opportunity” to reach consumers.

As Klarna moves to expand its reach through merchants, it is also revamping its credit card services. The company said last week that it would replace its card offering with one that removes the option for cardholders to split a payment into four installments.

While it launches the new card, the company is quietly phasing out the rewards program associated with the old card, according to a Tuesday report from Modern Retail.

Rival Affirm has also moved away from a loyalty program. “While Affirm’s Rewards beta program is no longer available, we are continuing to explore how we can bring a best-in-class rewards experience to our consumers,” an Affirm spokesperson told the retail news site.

The partnerships and product shuffling may be part of a quest for profitability, with the ultimate goal of an initial public offering. Siemiatkowski said that the company’s IPO could occur “quite soon,” according to a Bloomberg report last month.

Klarna reported a loss of about 2.5 billion Swedish kronor, or about $244 million, for last year.

Correction: The story has been updated to correct the company name of a spokesperson who provided a statement to Modern Retail about Affirm.

 

By James Pothen on April 23, 2024
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