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Klarna Targets Mainstream Crypto Adoption Through Privy Partnership

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Key Takeaways

  • KLAR partners with Privy to research and build a user-friendly crypto wallet for mainstream adoption.
  • The move taps Privy's large-scale wallet infrastructure to support new crypto features.
  • Potential for new revenue and engagement as KLAR integrates digital asset tools across its platform.

Klarna Group plc (KLAR - Free Report) recently announced a new research partnership with Privy, a wallet infrastructure platform owned by Stripe, to explore and co-design a simple and secure cryptocurrency wallet aimed at everyday users. This initiative follows Klarna’s launch of its own stablecoin, KlarnaUSD, in November 2025.

The goal of the latest partnership is to make it much easier for millions of people to store, send and transact digital assets using Klarna’s financial ecosystem. The collaboration will involve joint research and development of innovative products. Privy’s technology already powers more than 100 million accounts and supports major crypto platforms, giving Klarna access to scalable infrastructure. It is expected to leverage its existing user base to bring crypto into mainstream financial life. Final products and features will still need regulatory approvals before launch.

This move signals fintech firms pushing crypto beyond niche trading and into everyday finance. Instead of catering only to early adopters, Klarna is working to make digital assets feel as intuitive as traditional payments and savings tools. With hundreds of millions of crypto holders globally and millions transacting monthly, accessible wallets could significantly broaden adoption.

For Klarna, adding crypto wallet capabilities could open new revenue streams and deepen customer engagement. By embedding crypto features into its platform, Klarna can differentiate itself from competitors and tap into the growing digital asset economy, potentially enhancing long-term growth. However, execution and regulatory compliance will be key to realizing these benefits.

How Are Peers Placed?

Among Klarna’s peers, PayPal Holdings, Inc. (PYPL - Free Report) has already incorporated stablecoins into its operations to stay competitive in the evolving digital payment landscape. It has launched its own stablecoin, PYUSD or PayPal USD, built on the Ethereum blockchain, enabling users to buy, sell and transfer the token directly within its platform and on some external wallets.

Payments giant Visa Inc. (V - Free Report) is investing handsomely in stablecoin infrastructure and running pilots for fast adoption. Last month, a pilot program was introduced, allowing instant payouts in USD-backed stablecoins through its Visa Direct platform. It will enable creators and gig workers to receive their earnings in digital currency directly to their crypto wallets. 

Klarna’s Price Performance, Valuation and Estimates

Shares of Klarna have declined 6.6% over the past month, underperforming the broader industry’s 2.3% fall.

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From a valuation standpoint, Klarna trades at a forward price-to-earnings ratio of 72.59X, higher than the industry average of 20X. Klarna carries a Value Score of D.

The Zacks Consensus Estimate for Klarna’s 2025 bottom line is pegged at a loss of 57 cents per share, followed by 188.5% improvement next year.

Zacks Investment Research Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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