Klarna launches 'buy now, pay later' service in Spain

Swedish online lender Klarna, one of Europe’s biggest fintech firm, is entering in Spain on Tuesday with its “buy now, pay later” service that allows shoppers to pay in interest-free installments at some retailers.

Under its “Pay in 3” offer, Klarna customers will be able to buy online and split their purchase into three equal payments, spread over 60 days.

The company, which has partnerships with merchants such as H&M, Sephora and Adidas, said it will go live with fashion brand Michael Kors in Spain at the end of July.

Founded in 2005, Klarna is currently valued at $5.5 billion after raising $460 million in August from the likes of Dragoneer Investment Group and BlackRock.

It has been expanding rapidly across Europe and the United States, and the investment resulted in a operating loss of 1.1 billion Swedish crowns ($113 million) in 2019.