Klarna and Google Cloud have sealed a strategic AI partnership as the Swedish FinTech looks to advance the development of innovative consumer-centric products and creative campaigns.

Klarna, which has over 114 million consumers worldwide, said it will leverage Google Cloud's entire suite of AI solutions, including infrastructure, platforms and models.

The partnership will initially focus on strengthening Klarna’s consumer experience within its app.

Klarna will also focus on refining its extensive library of over 200 million images by using Google’s AI models to regenerate and refine images to boost further content personalisation.

Additionally, the partnership will extend to security, with Klarna implementing Google Cloud's AI capabilities to train and deploy graph neural networks to combat fraud and money laundering on its platform.

These advanced machine learning models are designed to analyse complex relationships and connections between entities, such as users, transactions and devices, to detect anomalies and suspicious patterns with greater accuracy.

The Buy Now, Pay Later (BNPL) firm said it is already leveraging Google's latest generative media models, including Veo 2 and Gemini 2.5 Flash Image (Nano Banana), to create dynamic digital “lookbooks” for consumers within its app. 

It is also using Google's AI models to help create hyper-personalised marketing campaigns for its users.

 On Friday, David Sandström, chief marketing officer at Klarna said: “By combining Google Cloud's cutting-edge AI models with Klarna's consumer insights, the company seeks to create smarter and more personalised experiences.”

Klarna’s data shows that creative concepts based on AI, from dynamic digital lookbooks to hyper-personalised product campaigns, have already increased consumers’ time spent in the Klarna app by 15 per cent, boosting orders by 50 per cent.

“For us, this is proof that when creativity meets AI, the results can transform the way people shop,” Sandström noted.

Marianne Janik, vice-president, EMEA North at Google Cloud, added: "Our integrated, AI-optimised platform and cutting-edge models are enabling Klarna to unlock significant creative velocity and drive innovation.”

With over 2.9 million transactions per day, Klarna's AI-powered payment and commerce network enables consumers to make payments online, in-store and via Apple Pay and Google Pay.

Its customer base currently includes over 790,000 retailers, including Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb.

Last month, the company announced the expansion of its debit-first card to users across Europe following a successful US launch in July, where 685,000 Americans signed up within two months.

The Klarna Card, powered by Visa Flexible Credential, is debit by default, enabling users to pay instantly with their own funds at more than 150 million Visa merchant locations worldwide, both in-store and online.

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