The Swedish fintech said it will establish its first North American product-development and tech hub in Toronto, with plans to hire at least 500 engineers by 2025 and open more offices in Vancouver and Quebec in the future. Its installment-payment product is also available to Canadians as of today. (The Logic)

Talking point: Klarna has been laying the groundwork for its expansion for months, and has been recruiting a leadership team in Canada since at least early 2021, The Logic reported in July. Throughout the pandemic, as people shopped more online, installment-payment services like Klarna, Afterpay and Affirm have emerged as an alternative to credit, particularly among younger consumers. Yet the rise of these firms has also attracted attention from regulators. In Canada, the federal consumer-finance watchdog has begun collecting information on how to oversee the growing market, The Logic reported in November. Canadian brands that have signed up with Klarna include the men’s clothing chain Harry Rosen and the retailer Frank And Oak.