Banco Santander funds EUR1.4 billion to leading flexible payments provider Klarna

DLA Piper has advised Banco Santander, a leading financial institution, on the provision of EUR1.4 billion as the sole lender in a warehouse financing facility to Klarna, the global digital bank and flexible payments provider. The financing, backed by German receivables, is aligned to Klarna's objective of diversifying funding sources and supporting growth.

Founded in 1857, Banco Santander (SAN SM) is one of the largest banks in the world by market capitalisation. In the first quarter of 2025, Banco Santander held EUR1.3 trillion in total funds and 176 million customers.

A cross-border and multidisciplinary DLA Piper team from offices in the UK, Germany, Ireland, and Sweden, worked on the transaction. The teams were led by Finance partner Steven Krivinskas, senior associate Patrick Lightbown, and associate Ben Atkins. They were supported by partners Eike Neugebauer, Sven Schelo, Conor Houlihan, Mikael Kövamees, Carl Schwieler, Marie Theres-Rämer, Maura Dineen, Verena Grentzenberg, Thilo von Bodungen, counsel Albina Daka, legal director Oisin Mulvihill, senior associates Betina Fischer, Paul Eglington, associates Cennet Issenin, Karl Forslin, Lovisa Åberg, Erik Hellem, Paul Fröhlich, Romano Nicklas, Maximilian Mitscherlich, and consultant Sabrina Ulbrich.

Steven Krivinskas commented: "Advising Santander on this landmark structured warehouse financing for Klarna highlights the growing synergy between traditional banking institutions and fintech innovators; while also signalling broader market confidence in structured receivables-backed financing and sets a precedent for how established banks can collaborate with fast-growing digital players to support scalable expansion and financial resilience in the fintech ecosystem.”