Global disruptor of payments and banking Klarna has announced a $460 million raise in an equity funding round. This bring the fintech to a post money valuation of $5.5 billion, and ranks Klarna as the largest private fintech in Europe and as one of the largest private fintechs globally.

In a press release, the company stated that the funding will “help Klarna to continue its rapid rise in the US market, where it is currently growing at an annual rate of 6 million new US consumers.”

Klarna’s unique consumer offering provides a healthier and smarter alternative to credit cards, with the addition of multiple services to smoothen the shopping experience, online and offline.

This comes at a time when consumers are turning away from revolving credit lines towards alternative and more flexible financing alternatives. Klarna’s recently launched shopping app which allows its users to shop with Klarna at any store or brand online has been received very positively, with now more than 50% of the app users purchasing each week.

Klarna has also seen a surge in merchant demand for its services. Klarna is now powering over 3000 merchants in the US – including rue21, ASOS, Lulus, Toms, Superdry, Sonos and Acne Studios – and helping them increase new consumer acquisition, average order value and retention.

Klarna now serves over 60 million consumers, 130,000 merchants partners,  has 1 million transactions daily and is in sight of a $1 billion annual revenue.

Sebastian Siemiatkowski, co-founder and CEO of Klarna said: “This is a decisive time in the history of retail banking. Finally, transparency, technology and creativity will serve the consumer, and there will be no more room for unimaginative products, non-transparent terms of use or lack of genuine care of ones customers.

“All 2500 of us at Klarna, are humbled and honoured, and now also further empowered, to play a role in this improvement of an industry for the benefit of the consumer, worldwide and in the US in particular. “