Sweden-based Klarna, a BNPL provider, has sold its online checkout solution, Klarna Checkout (KCO), to a group of investors led by Kamjar Hajabdolahi (CEO of BLQ Invest) for USD 520 million. Following its sale, KCO will operate independently under its new ownership from October 1.

Launched in 2012, Klarna Checkout allows merchants to offer Klarna's flexible payment methods to customers during checkout. KCO states over 40% of the market share is in Sweden and over 20% across the Nordics.

By divesting KCO, Klarna aims to eliminate conflicts that arose from offering its payment methods directly to merchants via KCO and through distribution partners like Adyen and Stripe. The divestiture will allow Klarna to focus solely on providing its payment solutions through distribution partners, while KCO can grow under the new management.