"We will become Klarna's exclusive partner in Australia and New Zealand and intend to further invest at the parent and local level to support this partnership,"the bank said in the release of its full year results on Wednesday.
CBA's chief executive Matt Comyn described Klarna as"one of the leading global payments providers"and said its product offering was broader than buy now,pay later.
The Commonwealth Bank is the first of the big four to react to the popularity of instalment payments products,which have exploded in popularity over the past two years. There are currently five different ASX-listed buy now pay later entities,led by $6 billion valued Afterpay.
"Together we see a huge opportunity in serving Australian and New Zealand customers,"said Klarna.
I've endorsed them,advised them,and now I’m looking to invest in them. I plan to keep growing the portfolio,ya dig
Klarna said it has a range of products and services that can be launched in Australia and New Zealand. This includes a recently launched shopping app"which allows its users to shop with Klarna at any store or brand online."
The company,which targets Millennial customers,claims to be servicing 60 million consumers globally via 130,000 merchant partners and is on track to generate $US1 billion in revenue for the current financial year.