Klarna, a Swedish fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term company, released its latest financial results on Tuesday, showing that its revenue for the fiscal year 2022 shot up 21% to SEK 19.3 billion ($1.85 billion). The buy now, pay later (BNPL) company’s total net operating income also increased by 20% to SEK 16.7 billion ($1.6 billion).

Additionally, the report shows that the firm’s gross merchandise volume (GMV), which describes the monetary value of products and services transacted via Klarna, rose 22% to SEK 837 billion ($80.35 billion) during the past fiscal year. In addition, Klarna's GMV increased by 19% during the fourth quarter of 2022 when compared to the same period in 2021.

Giving further details, Klarna reported credit losses of 0.58% at the end of the last quarter. Moreover, the company said its gross profit in “mature markets” came in at SEK 8.5 billion ($816 million) during the one-year period.

“[Our] performance was driven by continuing stellar growth in the US and ongoing progress on improving credit loss performance, supported by GMV growth in all of Klarna’s markets. Our mature markets continue to make SEK 8.5bn gross profit while our newer markets are scaling into profitability,” Klarna explained in the report.

US Emerges Klarna’s Largest Market by Revenue

According to Klarna, the fintech company’s base is further expanding in the United States where the company now boasts 34 million consumers. This new figure made the United States the Swedish fintech company's "largest market by revenue for the first time in December, overtaking Germany.”

“The US remains an engine of growth with GMV up 71% YoY in 2022, made all the more impressive as we improved credit loss rates by 37% at the same time,” explained Sebastian Siemiatkowski, the CEO and Co-Founder of Klarna.

Furthermore, Klarna noted that it parted ways with 10% of its workforce in May 2022 due to the threat of recession and shifting investor sentiment from growth to profitability during the height of the Russia-Ukraine war. However, the fintech company was able to grow its consumer base to about 150 million global consumers and 500,000 global retail partners. Finance Magnates reports that the Swedish fintech company had about 147 million active consumers at the end of 2021 with more than 400,000 global retailers.

Meanwhile, Klarna said it had raised over $800 million in 2022 “during one of the steepest drops in global stock markets in over fifty years.”