Client profile

Klarna is a global leader in payments, serving over 150 million customers across 45 countries. Known for innovation and rapid growth, Klarna’s shopping solution continues to redefine retail finance at scale.

The challenge

As Klarna expanded globally, they needed a collections partner that could:

• Scale alongside their international customer base
  
• Deliver consistent performance across multiple jurisdictions
  
• Navigate complex regulatory landscapes with confidence

InDebted’s Collect product proved the ideal match—a modern collections solution built for global scale, local compliance, and customer-first engagement.

The solution

1. A third-party collections extension
Klarna first partnered with InDebted in May 2020, beginning with their Australian customers. Early results were promising, with InDebted recovering 25% of total referred debt in the region. This success led Klarna to expand the relationship to include Canada, New Zealand, and the United States.

To support this multi-market approach, Klarna implemented an API integration with InDebted—transforming the partnership into a real-time third-party collections extension. The API enables automatic referrals and two-way communication, seamlessly syncing customer account data between systems and eliminating the need for repeated manual transfers.

2. Multi-market compliance
Operating across countries with differing—and often complex—regulatory requirements, Klarna needed airtight compliance capabilities. InDebted’s product embeds regulations directly into its codebase, including rules for each country, state, and province.

This is reinforced by a compliance firewall, ensuring that only compliant messages are sent across channels. Factors such as contact frequency, legal notices, time zones, and disclaimers are all managed within the platform’s governance framework. This robust approach is supported by industry certifications including ISO27001, SOC2, ISO9001, and PCI/DSS.

3. Access to the world’s largest source of collections data intelligence
Personalisation at scale is a core driver for the success of Klarna’s collections strategy with InDebted. Our third-party solution delivers this through advanced machine learning models trained on insights from millions of consumer interactions worldwide.

These models identify how, when, and where each customer prefers to engage—creating tailored journeys that build trust and boost repayment rates. Klarna also benefits from deep insights into customer behaviour, such as:

• Liquidation rates by demographic and location
  
• Seasonal trends in payment behaviour
  
• Engagement metrics across communication channels
  

This rich intelligence helps Klarna refine both its collections and broader customer strategies.

The results

“As a global debt collection agency, partnering with InDebted has saved us the time, cost and inefficiencies of needing a new supplier in every region. InDebted is a key part of us delivering our customers a better way to shop, globally.”
— Jan Hansson, Vice President – Collections, Klarna

With InDebted, Klarna has found a collections partner that matches their pace of innovation and expansion. The seamless integration allows Klarna not only to automate referrals, but also to track how customers progress on their journey to becoming debt-free.

Together, Klarna and InDebted are setting a new global standard for intelligent, scalable, and customer-centric debt collection.