Biggest Fintech Firm in Europe – Sweden’s Klarna

Christopher ZeniosChristopher Zenios16/08/20192min
Following a new round of investor funding, Sweden’s Klarna increased its value to $5.5bn (£4.5bn).

This new investment has secured Klarna’s place as Europe’s largest Fintech firm and sixth largest fin-tech firm in the world.

What is Klarna?

Klarna is a Swedish payments company with a “shop now, pay later” model. It is marketed as an alternative to credit cards, allowing people to pay later either with a big sum or small installments without interest on most items, in the condition that the payments are on time.

The company is so popular that it is now presented alongside credit, debit or PayPal options when shoppers reach online checkout for more than 130,000 retailers, including big names such as JD Sports, Asos, and Topshop.

The system now has more than 60 million users worldwide and 1 million transactions processed every day resulting in the company likely to make $1bn in annual revenue. Klarna makes money by charging merchants and customers who do not pay on time.

The new round of funding will be used for expansion in the US market where the company has now partnered with more than 3,000 companies with names such as Toms, Sonos, and Superdry.

Klarna also has its sights set on Australia and New Zealand as it announced an exclusive partnership with the Commonwealth Bank of Australia.

Many business welcome Klarna as the company report that flexible payments are assisting in increases in sales. Those who have accepted payments via four installments have reported a 68% increase in the size of their average orders.

Retailers who have adopted the payment system include H&M, Ikea, Nike, AliExpress, Zara, Agent Provocateur, and Klarna report that they are in discussions with a further 1,000 more retailers.

 

Image Source by Tech.eu

Christopher Zenios

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at czenios@highworthcitizen.com for editorial related questions.



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