KLAR - Takeaways from Meeting with CFO

Research evidence excerpt

KLAR - Takeaways from Meeting with CFO

June 11, 2026

●PSP Distribution Strategy: KLAR framed its PSP distribution strategy as a key driver of ubiquity. The company

attributed its success in signing default PSP contracts to its ability to offer payment products viable for every

type of merchant and transaction (Pay in Full, Pay Later, Fair Financing). PSPs also appreciate KLAR's geographic

reach and strong consumer affinity across 26 markets. Management noted this PSP strategy is a multi-year

growth driver, with Stripe continuing to ramp, Nexi now live and ramping, and JPMorgan Payments and Worldpay

launching later this year. While Stripe has been live the longest, significant opportunity remains for this partnership

as only a portion of Stripe's base is live, and the companies can continue expanding to more merchant categories,

markets, etc.

●Processing/Servicing Costs: KLAR noted driving improvements in processing/servicing costs is a key priority

(especially in the US), with a significant opportunity to improve TMD over time given the size of the cost base

today. Key drivers of the increase in processing/servicing costs in 1Q were volume growth broadly, the mix shift to

Fair Financing (Fair Financing has more repayment points and more scoring costs, though ultimately it generates

3x higher transaction margin over time), and card issuance fees. To drive improvements in this line item, KLAR is

working to encourage customers to use ACH, pay-by-bank, and Klarna Balance, along with bundled repayments

for consumers using KLAR more frequently. The company expects processing/servicing costs as a % of GMV to

slightly decline throughout the year.

●Deepening Consumer Engagement: Management highlighted Klarna Card is seeing strong momentum, and