Klarna, a Stockholm-based financial tech company, has rebranded its well-known Klarna Checkout (KCO) system to Kustom, following its sale to a consortium led by entrepreneur Kamjar Hajabdolahi for 5.4 billion kronor ($520M). This move is aimed at providing merchants with a more customizable checkout experience while maintaining existing service standards. The rebranding reflects the company’s strategic goal to integrate merchant feedback into product development, and it underscores the commitment to evolving its payment solutions. The digital landscape continues to shift, and companies like Klarna are adapting their strategies to meet the needs of their business clients in diverse markets.
Looking at past reports, Klarna Checkout has consistently been a key player in the digital payment space, with a strong market share, particularly in Sweden and the broader Nordic region. Previously, Klarna focused heavily on its own checkout platform; however, the company’s latest initiatives show a shift towards partnering with other Payment Service Providers (PSPs). This evolution suggests Klarna’s growing emphasis on expanding its core payment method offerings and leveraging strategic partnerships to enhance its service delivery.
How Does Kustom Benefit Merchants?
Kustom, the newly rebranded checkout service provider, promises to offer an enhanced range of payment methods for merchants through a partnership with Stripe. New features resulting from this collaboration are expected to be integrated over the course of 2025. The firm has committed to tailoring the checkout process to align more closely with individual business requirements, thereby improving merchant satisfaction and operational efficiency. By addressing these aspects, Kustom aims to optimize conversion rates and foster more robust business relationships.
Who Leads Kustom?
The leadership of Kustom is set to include seasoned professionals from Klarna. Kamjar Hajabdolahi will lead as CEO, supported by key figures such as Jesper Eriksson as Chief Commercial Officer, Rasmus Fahlander as Chief Product Officer, and Alexander Olsson as Chief Financial Officer. This team is expected to leverage their experience to drive the company forward by focusing on merchant solutions and the expansion of KCO’s market reach.
Klarna’s decision to sell and rebrand its checkout service was influenced by several factors. Despite its significant market share in Sweden and the Nordics, Klarna’s strategic direction has shifted towards its core payment offerings rather than checkout innovations. The divestment enables Kustom to focus solely on enhancing the checkout experience, while Klarna continues to support it as a payment provider and distribution partner. This approach allows Klarna to streamline its operations and concentrate on its central business objectives.
Hajabdolahi, who now spearheads Kustom, is optimistic about the transition, aiming to maintain KCO’s market-leading position while introducing advanced services.
“Kustom will continue to deliver our market-leading checkout solution for both small and large merchants, but we’re also excited to soon offer even more, with enhanced and improved services,” stated Alexander Olsson, CFO of Kustom.
This sentiment reflects the company’s vision for future service enhancements and growth.
The rebranding to Kustom represents a significant move for Klarna and its checkout service. It underscores the evolving priorities in the digital payments industry, where customization and responsiveness to client feedback are becoming increasingly important. For merchants, this transition could mean more tailored solutions and improved service delivery. For Klarna, it signifies a strategic pivot to reinforce its core offerings by aligning with partners like Stripe to improve payment processing capabilities. As the industry continues to evolve, companies must adapt their strategies to remain competitive and relevant.
