Klarna joins Google’s Agent Payments Protocol for AI commerce

NEW YORK - Klarna, the fintech giant with a market capitalization of $14.63 billion, announced Monday it will support Google’s Agent Payments Protocol (AP2), an open standard designed to enable secure payments across AI-driven digital environments. According to InvestingPro data, the company maintains robust financial health with a current ratio of 17.82, indicating strong liquidity to support its technological initiatives.

The collaboration extends Klarna’s existing relationship with Google, which already includes integrations with Google Pay, Chrome’s autofill feature, and various Google platforms.

AP2 aims to establish a framework for "agent-led commerce" - transactions initiated or facilitated by AI assistants rather than direct human action. Klarna’s participation will bring its payment infrastructure, including real-time underwriting and flexible payment options, to these emerging AI commerce channels.

"Agent-led commerce represents an exciting new frontier, one that demands transparency, trust, and smarter payment experiences," said David Sykes, Chief Commercial Officer at Klarna.

Stavan Parikh, VP/GM of Payments at Google, highlighted the importance of cross-industry collaboration in developing secure frameworks for future commerce models.

The Swedish fintech company, which serves over 111 million active users globally and processes 2.9 million transactions daily, views this partnership as part of its evolution from a payments provider to a contributor to next-generation commerce infrastructure. The company has demonstrated impressive growth, with revenue increasing by 19.78% over the last twelve months. For deeper insights into fintech valuations and growth metrics, InvestingPro offers comprehensive analysis tools and additional ProTips.

According to the press release statement, the protocol will enable consistent payment experiences regardless of whether consumers are directly interacting with or delegating transaction duties to AI agents.

Klarna currently works with approximately 790,000 retailers, including major brands like Uber, H&M, Sephora, and Nike.

In other recent news, Klarna announced a strategic partnership with Google Cloud to enhance its AI-powered services. This collaboration aims to improve consumer experiences by leveraging Google’s AI technology, focusing on personalized shopping journeys and creative capabilities within Klarna’s app. Additionally, several financial firms have initiated coverage on Klarna with positive ratings. Deutsche Bank has given Klarna a Buy rating with a $48 price target, highlighting its position as a leading player in the Buy Now, Pay Later sector. BofA Securities also rated Klarna as a Buy, setting a price target of $51, noting its consumer-friendly financing options. Wedbush and Wolfe Research both initiated coverage with an Outperform rating, each setting a $50 price target. These recent developments reflect a strong market interest in Klarna’s growth potential and strategic initiatives.

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