Klarna to Sell $26B in US BNPL Loans

Klarna has struck a landmark agreement to sell up to $26 billion worth of US buy now, pay later loans to student loan giant Nelnet. The deal, structured as a multi-year forward flow arrangement, will see Klarna transfer newly originated, short-term, interest-free Pay in 4 receivables on a rolling basis.

This move gives Klarna predictable, off-balance-sheet funding as it continues to expand in the US while preparing for its long-anticipated IPO. Despite the sale, Klarna will continue to both originate and service the loans, ensuring no disruption for consumers or merchants.

CFO Niclas Neglén emphasized that the Nelnet partnership strengthens Klarna’s ability to responsibly scale its core BNPL product, while still providing millions of shoppers with interest-free payment options.

The deal mirrors Klarna’s earlier decision to offload its UK loan book to Elliot Advisors in a £30 billion transaction, a strategic move to free up capital and streamline its balance sheet. With BNPL adoption surging across the US, this partnership positions Klarna for growth while reducing risk exposure ahead of its IPO.