Klarna Checkout (KCO) rebrands to Kustom after being acquired by new owners: Know more

A couple of months back, Stockholm-based Klarna sold its Klarna Checkout (KCO) to an investor consortium, led by serial entrepreneur Kamjar Hajabdolahi at 5.4 billion kronor ($520M).

In a recent development, Klarna Checkout has been rebranded to Kustom.

Explaining the rebranding, the company says, “Kustom fundamentally reflects our desire to offer a high degree of customisation for our merchants. We will also be responsive to merchant feedback in our product development. Plus, we get to keep our abbreviation KCO.”

To help merchants maximising their conversion rates

Kustom, formerly Klarna Checkout (KCO), is a digital checkout solution and payment service provider offering various payment methods for merchants.

With Kustom, merchants can look forward to several benefits, including the introduction of new payment methods through a strategic partnership with Stripe.

The company claims that the partnership with Stripe will enable the fast integration of new features and payment methods – features that will be gradually rolled out during 2025.

Additionally, the company is planning to increase customisability in the checkout process, allowing merchants to tailor it to fit their specific business needs.

Furthermore, enhanced support will be provided to ensure that merchants receive the assistance they require promptly.

At present, the company has around 24,000 merchants and is available for usage in 170 markets. 

The company says that it handles transaction volumes of approximately SEK 150B per year.

Alexander Olsson, CFO of Kustom, says, “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.”

Kustom’s leadership

Kamjar Hajabdolahi will take on the role of CEO of the new company. Other key members of Kustom’s leadership will include:

• Jesper Eriksson as Chief Commercial Officer, previously Klarna’s Head of Sweden,
• Rasmus Fahlander as CPO, formerly Senior Product Director responsible for Klarna Checkout,
• Alexander Olsson as CFO, previously Klarna’s CFO,
• Kim Westerlund as Director of Operations, who previously served as Klarna’s Head of Merchant Operations

Why did Klarna sell KCO?

Launched in 2012, Klarna Checkout is a full checkout experience embedded on the site that includes all popular payment methods.

It has over 40 per cent market share in Sweden and over 20 per cent across the Nordics.

However, the Swedish company has increasingly focused on developing Klarna as a payment method. As a result, it has led to a decreased focus on innovation related to the Checkout platform.

Additionally, Klarna has deepened its partnerships with other Payment Service Providers (PSPs), and no longer sees the need to own and maintain the infrastructure for Checkout themselves.

As Klarna explains, “The divestment will enable the Checkout platform to reach its full potential, while Kustom will serve as a payment provider and distribution partner for Klarna going forward. The buyer’s sole focus will be on Checkout and its merchants, allowing Klarna to concentrate on our core business.”