Klarna (NYSE: KLAR) reported reaching 1 million merchants globally, representing 47% growth in merchant partnerships over the past year. The digital payments provider added 285,000 merchants in 2025, with more than 115,000 joining in the final quarter.

The company attributed its growth to expanded agreements with payment service providers, which facilitate merchant access to Klarna's checkout options. Klarna now operates across 26 markets through its merchant network.

Leisure, Sport & Hobby emerged as Klarna's fastest-growing merchant category, increasing 91% year-over-year in February 2026. The growth reflects consumer demand for flexible payment options in wellness and fitness sectors.

"Home repairs, a new couch, salon appointments, gym memberships - these are facts of life for most people, but the way they pay for them hasn't kept up," said David Sykes, Chief Commercial Officer at Klarna. "Reaching 1 million merchants is a reflection of how deeply embedded Klarna is becoming in everyday money management."

Klarna processes 3.4 million transactions daily and serves over 118 million active users globally. The company's merchant partners include retailers such as Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb.

The information is based on a company press release statement.