By Oliver Smith on Monday 3 February 2020
An extra $200m for the Swedish fintech, and a 50/50 partnership for the Australasian market.
The CBA has invested an additional $200m on top of the $100m it already invested in Klarna last year.
This also makes the CBA one of Klarna’s largest minority shareholders with a 5.5% stake in the business.
Read more: How Klarna became Europe’s largest fintech?
Pay-later services are a lucrative market in Australia and New Zealand, where Afterpay (the parent of pay-later brand Clearpay) and Laybuy have been going head-to-head for supremacy while both expanding globally.
The CBA’s decision to build a $300m stake in Klarna and jointly finance its Australian business highlights the opportunity Klarna’s arrival poses for the incumbent bank to disrupt what could otherwise become a duopoly between Afterpay and Laybuy.
In Europe and North America Klarna struck a similar arrangement with retailer H&M, which the fintech used as a launchpad to expand into the US and onto UK high streets.