Klarna Aims to Offload $516 Million in Credit Risk to Fund Growth

Klarna is working on a significant risk transfer (SRT) that will enable it to offload credit risk tied to buy now, pay later (BNPL) loans and free up capital, Bloomberg reported Tuesday (July 14), citing unnamed sources. The SRT is tied to about 5 billion kroner (about $516 million) of loans originated by Klarna’s Swedish unit, and the transaction may be completed by the end of the quarter, according to the report. Reached by PYMNTS, Klarna declined to comment on the report.