Klarna Teams With Privy to Build Crypto Wallet, Aiming to Boost Mainstream Adoption

Klarna, the Swedish fintech giant, has announced a partnership with Privy, a Stripe-backed wallet infrastructure platform, to explore potential crypto wallet solutions for its users. The collaboration comes after Klarna's recent launch of its stablecoin, KlarnaUSD, in partnership with Tempo and Bridge. The goal is to make it easier for everyday consumers to use, store, and transact with cryptocurrencies, reducing barriers for mainstream adoption according to reports.

Klarna's CEO, Sebastian Siemiatkowski, emphasized the company's unique position to integrate crypto into the financial lives of ordinary users, not just early adopters. "Millions already trust Klarna to help them manage everyday spending, saving and shopping," he said. "That puts us in a unique position to bring crypto into the financial lives of normal people." The partnership aims to develop intuitive products that blend seamlessly with Klarna's existing ecosystem.

The collaboration with Privy represents a research and development initiative as Klarna explores digital asset infrastructure possibilities. Any future product launches will require necessary regulatory approvals and licenses in applicable jurisdictions. The company's move into crypto is part of a broader trend where mainstream financial players are testing ways to integrate crypto tools into traditional consumer finance.

Growing Trend in Crypto Adoption

The partnership aligns with a growing trend of financial institutions exploring the potential of digital assets. According to venture capital firm a16z, approximately 716 million consumers hold cryptocurrencies globally, with 40-70 million transacting with crypto each month. The figure is growing by 10 million annually, indicating a steady rise in mainstream interest according to reports.

Privy, which powers over 100 million accounts for 1,500 developers, including platforms like OpenSea and Hyperliquid, will provide the infrastructure for Klarna's potential crypto wallet. Klarna users could eventually hold stablecoins or other crypto assets, send money to friends, and potentially invest or transact globally within Klarna's ecosystem.

Strategic Shift in Financial Services

Klarna's move into crypto marks a strategic shift in its financial services offerings. Known for its buy-now, pay-later services, the company is now betting that digital currencies and wallets could play a key role in lowering the cost and friction of global payments. The company's recent launch of KlarnaUSD, a dollar-backed stablecoin, is a stepping stone in this direction according to reports.

CEO Siemiatkowski noted that the technology has matured, and with Privy, Klarna plans to build products that feel as intuitive as any other Klarna feature. "This is how mainstream adoption happens: simple, safe, and part of daily life," he said. The company's vision includes embedding crypto directly into its financial products rather than offering it as a standalone app for crypto enthusiasts.

Market Reaction and Financial Performance

Despite Klarna's recent revenue growth of 17.82% in the last twelve months, the company is not expected to be profitable this year. Klarna's stock has fallen significantly over the last six months, with a price decline of nearly 30%. According to InvestingPro, the company currently trades above its Fair Value, suggesting potential overvaluation.

The company reported Q3 2025 revenue of $903 million with 51% U.S. growth, yet the stock fell 8.97% to $33.4 amid profitability concerns. Operational efficiency improved with revenue per employee reaching $1.1 million, while the company saved $60 million through AI implementation. Klarna Card users grew to 3.2 million globally, contributing to the company's GMV of $32.7 billion and 108% revenue growth according to financial reports.

Regulatory and Market Challenges

Klarna's venture into crypto is not without challenges. The company must navigate a complex regulatory environment, with any future product launches requiring necessary approvals and licenses. The Schall Law Firm is currently investigating claims on behalf of investors of Klarna Group plc for violations of the securities laws. The investigation focuses on whether the company issued false and/or misleading statements and/or failed to disclose information pertinent to investors according to legal reports.

The regulatory scrutiny comes as Klarna continues to expand its financial services offerings. Management forecasts over 30% revenue growth for Q4 2025, with transaction margin dollars projected between $390-400 million. CEO Siemiatkowski emphasized trust as a core value and outlined plans to expand fair financing offerings and transform into a full neobank according to company forecasts.

Conclusion

Klarna's partnership with Privy highlights the company's commitment to exploring innovative financial solutions. As the fintech industry continues to evolve, the integration of crypto into mainstream financial services is becoming increasingly viable. Klarna's strategic moves, including its stablecoin and potential crypto wallet, reflect a broader industry trend toward embracing digital assets according to industry analysis.

The success of these initiatives will depend on regulatory developments and market adoption. Klarna's ability to navigate these challenges will be crucial in determining its future in the rapidly changing financial landscape. The company's CEO remains optimistic, emphasizing the potential of crypto to enhance the everyday financial lives of consumers according to leadership statements.