Embedded finance: Klarna partners with Liberis for revenue-based finance

Klarna is expanded the lending services it offers to merchants with a new partnership with embedded finance provider Liberis offering revenue-based financing.

Klarna, which currently provides 250,000 merchants in 17 countries with buy now and pay later functions, will now also offer its merchant partners flexible financing solutions based on their revenues and actual transactions. 

All of the transactions for the financing - both receipt and payment - take place within the merchant’s Klarna account, at a pre-arranged rate of their choosing. 

Liberis has used this lending style for several years but pivoted to providing ‘embedded lending’ to third parties in 2020, working with the likes of Worldpay. It integrates directly into its partners’ platform through an API which then allows revenue-based finance, with payment terms based on their actual transaction data.   

Rob Straathof, CEO of Liberis said“Klarna’s “Buy now Pay Later” functionality has allowed merchants to serve their customers for many years. We are thrilled to expand this functionality by offering these companies a flexible financing option, embedded within Klarna’s platform, that will bolster their businesses through hard times and periods of growth.”

The revenue-based funding options will be available immediately for Klarna merchants around the world in the coming months. 

Liberis raised £70m from the likes of British Business Investments, Paragon and Silicon Valley Bank last year. 

The UK-based firm says it has financed more than 17,000 SMEs worldwide with more than $700m.