Klarna has arranged a new financing agreement where it will sell newly originated, short-term receivables from its Buy Now, Pay Later service to Nelnet Financial Services.
Klarna said in a press release that up to $26 billion in total payment volumes should change hands as part of the agreement. Proceeds would be used to expand Klarna’s U.S. presence while “enhancing balance sheet flexibility and supporting long-term capital strategy.”
The Swedish fintech launched its BNPL service in September 2015. In March, Klarna registered with the Securities and Exchange Commission to set the stage for an initial public offering in the United States.