Klarna Bets Big on AI as Shares Surge 15% in Trading Debut

Klarna's IPO Signals a New Marketing Playbook: AI at the Center

Klarna's first day on the New York Stock Exchange closed up nearly 15%, pushing the company's value to roughly $20 billion. Behind the momentum is a clear message from Chief Marketing Officer David Sandstrom: AI isn't a side project-it's the operating system.

He says AI is now embedded across Klarna's workflows and helping drive about $1 million in revenue per employee. What started as a "party trick," as Sandstrom put it, now runs everything from customer review analysis to ad concepting.

The AI Operating Model

• Output up, cost down: AI-driven content production increased asset volume by 600% while marketing spend fell 12% last year as the team reduced agency reliance.
• Full-stack adoption: Klarna is using Google tools like Gemini and "Veo 3," and continues to hire roles such as prompt engineers to scale internal capability.
• Everyday workflows: Teams use AI to mine reviews, generate concepts, and iterate creative faster than weekly cycles allow.
• Product edge: Klarna is developing an AI shopping assistant that can find products and complete purchases on behalf of users.

As Sandstrom noted, "The more convinced about AI the less we're measuring the impact of it." Translation: integrate first, then optimize.

The Numbers That Matter

• 111 million customers and integrations across ~790,000 merchants since entering the U.S. in 2019.
• $112 billion in transactions over the 12 months ended June 30.
• Q2 loss widened to $53 million (from $18 million), while revenue grew 20% to $823 million.

U.S. Pressure, Timing Lessons

In the U.S., Klarna trails Affirm by about $4 billion in payment volume. One cited misstep: a late move on a BNPL-enabled debit card. Affirm launched its card two years earlier, fueling in-store growth of 187% in Q4 2024. Klarna began piloting its card in June and says 685,000 U.S. customers have signed up since July.

Global Strength and Distribution

Internationally, Klarna leads with $25.3 billion in gross merchandise volume, more than double Affirm's $10.4 billion. Partnerships with Walmart, DoorDash, and eBay extend reach where competitors have struggled to win at scale.

The Other Competitive Front: Banks

Card-linked installment plans from American Express, Chase, and Citi are a growing threat. Banks can offer richer rewards thanks to different economics. Klarna counters with cash-back offers and a partnership with rewards startup Nift, but the gap in perks remains a hurdle.

Brand Positioning

Sandstrom says Klarna is building a consumer-friendly brand that resonates with women-distinct from the "male, transactional" tone he sees from rival fintechs. The goal: own a clearer emotional lane while AI compresses the cost of acquiring attention.

What Marketers Can Steal From Klarna's Play

• Build an AI-first workflow: plug AI into research, creative iteration, and production to raise output without bloating headcount.
• Measure throughput, not just impressions: track assets shipped, cycles shortened, and cost per concept.
• Reduce agency dependence with clear internal prompts, libraries, and templates.
• Hire for prompts and ops: treat prompt engineering and model orchestration as core skills, not experiments.
• Partner with strong model providers for video, image, and language where speed-to-quality matters. For context on model capabilities, see Google's Gemini overview (Gemini).
• Move faster on product-channel fit: Klarna's debit card delay is a reminder-distribution timing can decide market share.
• Differentiate the brand, not just the features: Klarna leans into tone and audience focus where rivals are more transactional.

If You Lead a Marketing Team

• Set a 90-day goal to cut creative cycle time by 50% with AI-assisted briefs, concepts, and edits.
• Stand up an internal "AI pod" (PM, prompt engineer, creative lead) to productize repeatable workflows.
• Allocate a small test budget to an AI assistant concept tied to your funnel (e.g., guided product finder).

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