Commonwealth Bank of Australia ups stake in Klarna

Swedish buy now, pay later firm Klarna has officially launched down under.

It has also bagged a further $200 million investment from Commonwealth Bank of Australia (CBA). Australia’s largest bank will now hold a 5.5% stake in the company, after making an initial $100 million investment last year.

CBA customers will be the first to try out Klarna’s service through direct integration with its mobile banking app. Purchased items will show up in the app and customers will also be able to take advantage of price drop and out-of-stock notifications directly from Klarna. The offering will also be available to non-CBA consumers.

“We are bringing together our market leading digital technology, merchant relationships and strong customer network with Klarna’s innovative payments technology and integrated shopping experience for the benefit of CBA customers and many more Australian consumers,” says CBA CEO Matt Comyn.

The two will jointly fund and have 50:50 ownership rights to Klarna’s Australian and New Zealand business. CBA also retains a right to partner with the FinTech in Indonesia.

Key appointment

Earlier this month, Klarna appointed Francine Ereira as General Manager for Australia and New Zealand.

Ereira will be responsible for the company’s launch and growth in the aforementioned countries. She previously worked at Zip Co, an ASX-listed provider of payment and credit solutions to retailers both online and in-store, as General Manager - Sales & Solution Delivery. Further details here.