Klarna has secured $1 billion equity funding, valuing the Swedish payments and banking service at $31 billion.

The company said it would use the money to accelerate international expansion and further capture global retail growth.

Klarna, which has over 250,000 retail partners, said the additional funding made it the “highest-value private FinTech in Europe” and the second highest worldwide.

In 2020, volume and revenue grew 46 per cent and 40 per cent to more than $53 billion and $1 billion respectively.

One per cent of the funding has also been pledged to raise a new sustainability initiative.

“Consumers want transparent products to help them bank, shop and pay that reflect the way they live their lives, not just outdated traditional models,” said Sebastian Siemiatkowski, co-founder and chief executive, Klarna. “Each and everyone of us at Klarna will continue to work hard on this, but it is also time for us, with our culture of change, disruption and innovation, to focus on tackling bigger, more complex issues.

He added:"I believe our industry has a responsibility to help in some way solve global sustainability issues and I hope others will join Klarna in our ambition.”

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