Klarna (NYSE: KLAR) has doubled its financing facility with Elliott Investment Management to $2 billion and extended the term by one year to three years, according to a company statement. The expanded agreement enables Klarna to facilitate up to $17 billion worth of US financing loans during the program's remaining life.

The facility expansion builds on a partnership first announced in November 2025. Under the agreement, Klarna sells newly originated US financing receivables to Elliott-managed funds on a rolling basis, providing off-balance-sheet funding while retaining consumer-facing activities including underwriting and servicing.

Klarna reported significant growth in its US financing gross merchandise value during the fourth quarter of 2025. The company stated the expanded facility provides additional capacity to support accelerated demand for its financing products.

"Klarna's US Financing is growing fast because it gives Americans something the credit card industry never has: real choice, clear terms, and no surprises," said Niclas Neglen, Chief Financial Officer at Klarna. "This partnership sets the foundation for us to meet the accelerating demands of our American consumers."

The Swedish payments company operates as a global digital bank and flexible payments provider with over 118 million active users globally and processes 3.4 million transactions daily. Klarna's merchant partners include retailers such as Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb.

The facility structure allows new loans to continuously enter the program as underlying assets amortize over the three-year term. Information is based on a company press release.