Klarna Doubles Loan Deal with Elliott Investment Management

March 24, 2026 Priya Shah – Business Editor Business

Novel YORK – Klarna, the global digital bank and flexible payments provider, announced Tuesday it has doubled its financing facility with Elliott Investment Management to $2 billion, extending the term by one year to three years. The expanded agreement is designed to support up to $17 billion in U.S. Financing loans, according to a company press release.

The facility doubles Klarna’s existing forward-flow and whole-loan sale agreement with funds managed by Elliott, reflecting strong performance since the initial partnership was announced in November 2025. In the fourth quarter of 2025, Klarna’s U.S. Financing Gross Merchandise Volume (GMV) experienced significant growth, prompting the need for increased capacity.

Under the terms of the agreement, Klarna will sell newly originated U.S. Financing receivables to Elliott-managed funds on a rolling basis. This provides Klarna with scalable, off-balance-sheet funding while allowing the company to retain all consumer-facing activities, including underwriting and servicing.

“Klarna’s US Financing is growing speedy because it gives Americans something the credit card industry never has: real choice, clear terms, and no surprises,” said Niclas Neglen, Chief Financial Officer of Klarna. “This partnership sets the foundation for us to meet the accelerating demands of our American consumers.”

The $2 billion facility will operate by continuously incorporating new loans as underlying assets amortize over the three-year term. This structure is intended to facilitate the origination of up to $17 billion in U.S. Financing loans throughout the program’s duration.

This latest development follows a previous agreement in November 2025 where Elliott Investment Management committed to purchasing $6.5 billion worth of Klarna’s U.S. Fair Financing loans, supporting the continued expansion of the product in the United States. Shares of Klarna (NYSE:KLAR) rose 4% following the announcement of the expanded financing deal with Elliott, according to market reports.