Klarna, the global digital bank and flexible payments provider listed on the NYSE (KLAR), is closing out March with a string of announcements that cement its position as one of the world’s most powerful commerce networks. From smashing the 1 million merchant barrier to expanding its Klarna Card to 5 million active users, deepening its retail partnership with H&M in Eastern Europe, and tapping into the fast-growing conscious beauty market with Good on You, the company’s momentum is hard to ignore.
Klarna Surpasses 1 Million Merchants Worldwide
In what the company is calling a landmark moment, Klarna officially surpassed 1 million merchant partners globally on March 17, 2026 — a 47% year-over-year jump that added 285,000 new merchants in 2025 alone, with over 115,000 of those joining in the final quarter. The growth is being powered by Klarna’s expanding agreements with the world’s leading payment service providers, making it easier than ever for retailers to offer Klarna at checkout.
Notably, Leisure, Sport & Hobby has emerged as Klarna’s fastest-growing merchant category, up 91% year-over-year in February 2026 — a sign that flexible payment options are no longer just a fashion-retail phenomenon. “Reaching 1 million merchants is a reflection of how deeply embedded Klarna is becoming in everyday money management,” said David Sykes, Chief Commercial Officer at Klarna.
Klarna Card Hits 5 Million Active Customers in 16 Countries
Just two days later, Klarna announced another major milestone: its physical Klarna Card has reached 5 million active customers across 16 countries, from Paris and Stockholm to London and Los Angeles. Unlike traditional credit cards, the Klarna Card draws from a customer’s own funds for everyday spending, with the option to spread costs for larger purchases without revolving debt or hidden fees.
The card is further supported by Klarna’s membership program, which offers perks like airport lounge access, travel insurance, and lifestyle subscriptions without requiring users to meet spending thresholds or carry balances. “They’re voting with their wallets and looking for the control and flexibility in a single card,” said David Sandström, Chief Marketing Officer at Klarna.
H&M Partnership Expands into Romania and Hungary
On March 23, Klarna brought its long-standing partnership with H&M — one of the world’s largest fashion retailers, to two new markets: Romania and Hungary. H&M shoppers in both countries can now choose flexible Klarna payment options at checkout, including paying immediately, in 30 days, or in three interest-free installments.
The expansion is well-timed. Klarna has already surpassed 500,000 active users in Romania since launching there in June 2023, and works with over 1,500 merchants in the market. “We are seeing increasingly strong adoption of digital payments in these markets,” said Loredana Pipoș-Lupescu, Klarna’s Country Manager for Romania.
Klarna and Good on You Target Conscious Beauty Shoppers
Rounding out the wave of announcements, Klarna has extended its partnership with Good on You, the world’s leading sustainability rating platform, into the beauty sector, responding to surging consumer demand for transparent, ethical beauty products. Building on their successful Conscious Collections in fashion, the expanded collaboration brings sustainability ratings and curated brand discovery to beauty shoppers directly within the Klarna app.
With nearly 9 in 10 consumers saying they want brands to help them make more ethical choices, and sustainable beauty ranking among the top trends in Klarna’s own 2025 Beauty Report, the timing of this move is strategic. Good on You’s ratings, which assess brands across up to 1,000 data points covering people, planet, and animals, now give Klarna users clearer guidance when shopping across beauty and skincare categories.
A Platform Firing on All Cylinders
Taken together, these four developments paint a picture of a fintech company successfully transitioning beyond its buy now, pay later roots into a full-scale digital bank and AI-powered commerce network. With over 118 million active consumers, 3.4 million daily transactions, and operations across 45 markets, Klarna’s scale is now rivaling legacy financial institutions while moving considerably faster.
