Klarna has announced a multi-year forward flow agreement with Nebraska-based financial services and investment firm Nelnet, aimed at supporting the expansion of Klarna’s Pay in 4 product in the US.

Under the agreement, Klarna will sell newly originated, short-term, interest-free Pay in 4 receivables to Nelnet on a rolling basis.

The programme is expected to cover up to US$26 billion in total payment volumes over its duration.

The arrangement is designed to provide scalable funding to support Klarna’s growth in the US, while offering flexibility for its balance sheet and long-term capital planning.

“This is a landmark transaction for Klarna in the US,”

said Niclas Neglén, CFO at Klarna.

“Our partnership with Nelnet allows us to scale a core product responsibly, while continuing to deliver smooth, interest-free payment experiences to millions of consumers.”

The forward flow structure provides predictable, off-balance-sheet funding.

Klarna will continue to originate and service all receivables under the programme, maintaining consistency for both consumers and merchant partners.

“Nelnet is thrilled to work with Klarna on this important transaction and support their continued success,”

said Judd Deppisch, Chief Investment Officer of Nelnet Financial Services.

“This strategic partnership leverages our expertise and financial strength to invest in attractive cash-flowing assets while supporting Klarna’s valuable offering to U.S. consumers, with the support of our lending partners.”

Featured image credit: Klarna