Klarna sells off checkout business, rebranded as Kustom

The news: Klarna spun out its Checkout business, now rebranded as Kustom, and sold the digital payments unit to investors, per a press release.

  • Kustom will make Klarna a “cornerstone” payment option but plans to support other methods as well. Kustom will not offer its own proprietary payment method or lending services.
  • The checkout business partnered with Stripe to scale out new payment methods and checkout features.

Klarna said Kustom serves 24,000 online merchants and processes more than SEK 150 million ($14.1 million) annually.