Latest tweets from Klarna


Buy now, pay later

Sector: Futurestore

Klarna seeks to "make shopping smoooth". Klarna was founded by Sebastian Siemiatkowski CEO and colleagues in 2005 in Stockholm, Sweden. It is Europe’s highest valued private fintech company, offering products and services to consumers and retailers within payments, social shopping, and personal finances. With 2500 employees from 86 nationalities they focus on one goal "to keep exploring just how smooth the future shopping experience can become". In 2020 the business was valued at over $5.5bn and is growing by almost 40% a year. It processes more than a million transactions a day, working with 170,000 merchants, in 17 core markets, and with key offices in Stockholm, London, New York and Berlin.

Here’s how Klarna works: A customer making an online purchase enters only their email address and post/zip code to buy an item. Klarna pays the retailer immediately and then collects the amount due from the consumer either immediately, in 30 days, in four interest-free payments or over six to 36 months, with interest.

The company makes its money predominately through the fees it charges merchants for its service and says that by using proprietary data analytics and modeling, it can give approved consumers a seamless buying experience. The service is available in 200,000 stores, such as H&M, Sephora, Adidas and Abercrombie & Fitch, and has about 85 million users worldwide, including about 6 million in the U.S. The company claims it adds a new merchant every seven minutes.

Since its founding in 2005, Klarna has distinguished itself from other fintech companies by turning a profit every year. In February it reported its first annual loss, after a year of expansion in the U.S. and Europe. In August 2019 it raised $460 million in financing, giving the company a staggering $5.5 billion valuation. Ant Financial, the payment affiliate of Chinese e-commerce giant Alibaba, bought a minority stake in Klarna in March for an undisclosed amount. Klarna counts U.S. rapper Snoop Dogg and Swedish retailer H&M among its investors.

So what can any online retailer learn from Klarna?

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