How does Klarna make money?

Klarna makes money through its merchant commissions and interchange fees. Klarna also earns interest on user accounts that are paying through financing. The merchant commissions have a flat fee of $0.30 and a variable rate of 3.29%.

Klarna has seen a drastic increase in its revenue. In 2021, Klarna's revenue increased by 32%, resulting in profits of $1.42 billion. This can be attributed to a hugely significant uptick in the amount of Klarna users. Almost 150 million consumers used Klarna in 2021, which was a 70% increase from the previous year.