Klarna enters a multi-year sale of newly originated “Pay in 4” loans to Nelnet, unlocking capital, enhancing U.S. growth, and supporting its planned IPO.
Highlights
Massive Forward-Flow Agreement: Klarna has signed a multi-year forward-flow agreement, allowing it to sell up to $26 billion in newly originated U.S. BNPL “Pay in 4” loans to student loan provider Nelnet.
Boosts Liquidity Ahead of IPO: The deal is designed to free up capital and improve balance sheet flexibility as Klarna prepares for a long-awaited U.S. IPO, while maintaining control over loan origination and servicing.
Supports Responsible Growth Strategy: According to Klarna CFO Niclas Neglén, the partnership enables the firm to scale its core product sustainably, ensuring continued seamless service for consumers and merchants.
Summary
Klarna has entered into a landmark forward-flow agreement with Nelnet, a leading student loan servicer, under which Klarna will sell up to $26 billion of its U.S.-originated “Pay in 4” BNPL loans over several years. This enables Klarna to access off-balance-sheet funding to fuel its growth trajectory, particularly in the U.S. market, while retaining loan servicing responsibility and ensuring continuity for consumers and retail partners.
As Klarna prepares for its long-anticipated IPO, the deal represents a strategic financial maneuver—unlocking liquidity, reducing risk exposure, and reinforcing its sustainable BNPL expansion plan.
