Klarna’s core model is buy now pay later , letting shoppers split payments into installments or defer them interest‑free, in exchange for merchants paying transaction‑based fees. The company has since expanded into digital banking and commerce‑marketing tools, effectively turning its payments network into a growth and advertising layer for merchants. They serve over 100 million active consumers and processes millions of transactions per day across more than 1 million merchant partners, including brands like Nike, IKEA, H&M, and Sephora.