Klarna Ads: how Klarna sells advertising in its shopping app

Klarna is the only network in this group that discloses its advertising revenue in SEC filings. Its 20-F gives $190 million for 2025, up from $13 million in 2020 (Klarna 20-F, FY2025). The IPO filing gave $180 million for 2024 (Payments Dive, 19 March 2025). Banks such as Chase report merchant spend driven instead, so Klarna is the cleanest public benchmark for what a financial media network earns.

The same filing shows advertising slowing inside Klarna. Advertising grew about 6% in 2025, while total revenue grew 25% to $3,509 million. As a share of transaction and service revenue, advertising fell from 9% in 2023 to 8% in 2024 and 7% in 2025 (Klarna 20-F, FY2025). Our growth figure is computed from the reported $180 million and $190 million. Klarna does not explain the slowdown, and we do not speculate on causes.

The ad product depends on the app, not on payments. Klarna earns ad revenue when someone clicks an ad after a search in the app or buys an item found there. On average, 46 million consumers opened the app each month in 2025 to shop, compare prices or track purchases. A shopper at a merchant's checkout who never opens the app is not reachable by Klarna Ads. That is a different model from offers networks such as Chase Media Solutions, which ride on card spend.

Sponsored search. Merchants pay for premium placement of their products in Klarna's shopping search, usually on cost per click.

Affiliate program. Merchants treat Klarna as a premium publisher and place shoppable products in front of app users. One option is a "dedicated shelf", a full carousel in the home feed. Fees are cost per action, cost per click or a flat campaign fee. Klarna says Expedia used the program through email and in-app ads in 2024 (company claim, Klarna 20-F, FY2025).

Brand ads. Display ads are sold on a cost per thousand impressions (CPM) basis through programmatic partners. Klarna also works with supply-side platforms (SSPs) to reach advertisers beyond its own merchants. All three formats appear in the 20-F. We found no offsite audience product and no in-store media.

Klarna targets on what users do in its app and checkout: what they browse and search, what they buy, delivery tracking, returns and service contacts, at product level (Klarna 20-F, FY2025).

What stays inside, and what goes out, is set out in Klarna's US privacy policy, version 12.2.0, published 1 October 2026. Klarna uses personal data to "provide advertising", including ads based on use of its services or of other websites. It shares data with marketing and advertising partners, who may use tracking tools to measure and target ads (Klarna Privacy Policy). The policy states that Klarna does not disclose personal information to third parties for their own direct marketing. It accepts that some activities count as a "sale" under state law and offers an opt-out.

Klarna's US privacy notice under the Gramm-Leach-Bliley Act (GLBA) says it shares data "for nonaffiliates to market to you" and that customers can limit it in the app's privacy settings. The federal rules behind that notice are explained in GLBA and advertising with bank data. Merchants receive placements and campaign reports; we found no product that hands them user-level data.

Ads Manager includes in-platform reporting for campaign tuning (Internet Retailing, 28 July 2025). Klarna says its data gives merchants "better measurability" (company claim). Because the click, the search and often the payment happen inside Klarna, it can link an ad to a sale made through the app.

Klarna has published no accreditation, lift method or third-party verification. Its examples are company claims: in 2024, Expedia and Hotels.com saw US basket size grow about 5% through the affiliate program (Klarna 20-F, FY2025).

1. Check that you are a Klarna merchant. Sponsored search and affiliate placements promote products that shoppers can buy with Klarna.
2. Open Ads Manager. Create sponsored search campaigns yourself, with targeting and reporting in one place.
3. Ask about the affiliate program. Agree the fee basis (per action, per click or flat) and whether email or the home-feed shelf is included.
4. Add brand ads programmatically. Ask Klarna which partners and SSPs carry its inventory, so you can buy it from your own platform.
5. Agree success metrics. Define what counts as a conversion and whether purchases outside the Klarna app are counted.

It suits:

• online merchants that already offer Klarna at checkout;
• fashion, beauty, electronics and travel brands whose customers compare prices in the app;
• performance teams that want cost-per-click or cost-per-action terms.

It suits less:

• brands with no Klarna checkout, since ads promote shoppable products;
• advertisers that want offsite audiences or CTV;
• buyers who need accredited or independently verified metrics.

• The names of Klarna's programmatic partners and supply-side platforms.
• Any minimum spend or rate card.
• Quarterly advertising revenue; Klarna's quarterly releases do not break it out.
• Whether Klarna Ads Manager is open in markets beyond the US, UK and Sweden.

1. Klarna Group plc, Form 20-F for fiscal year 2025 (filed 26 February 2026). https://www.sec.gov/Archives/edgar/data/2003292/000200329226000007/klar-20251231.htm
2. Klarna Group plc, "Klarna Reports Second Quarter 2026 Results", Form 6-K exhibit (18 August 2026). https://www.sec.gov/Archives/edgar/data/2003292/000162828026057573/klarnareportssecondquart.htm
3. Klarna Inc., Klarna Privacy Policy, US Consumer Privacy Notice v12.2.0 (published 1 October 2026). https://cdn.klarna.com/1.0/shared/content/legal/terms/en-us/privacy
4. Payments Dive, "Klarna seeks to flex advertising muscle" (19 March 2025). https://www.paymentsdive.com/news/klarna-buy-now-pay-later-bnpl-merchant-advertising-revenue/742883/
5. Internet Retailing, "Key player profile: Klarna, where retail media and commerce media meet" (28 July 2025). https://internetretailing.net/?p=70426