In a bid to head off encroaching fintech companies like Afterpay and Zip, the Commonwealth Bank has invested in Swedish company Klarna in Australia, increasing its equity stake to US$300 million.

The move will take CBA’s stake in the 15 year-old company to 5.5 percent, with equity in the local venture being 50 percent split.

CBA customers can access Klarna via the CBA app, but the service is also being made available to non-CBA customers with the hope that they will migrate to the banking giant.