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August 15, 2022

On the web

Klarna Expands ‘Super App’ to Track All Your Shopping

Alt Fi

“Klarna wants to lead a generational shift away from credit cards and, increasingly, be users’ only app for online shopping. Klarna has made a big step forward in its long-term strategy to become the sole shopping app consumers use. The BNPL giant has updated its app so consumers can use it to keep track of all online shopping, not just Klarna purchases.  Klarna says the move will help UK consumers save time and manage their online purchases more convenient.  Users connect their email accounts to the app and Klarna scans details from order confirmation emails and imports the data into the Klarna app. This data includes product images, prices, delivery tracking numbers, and carrier and parcel tracking information. The feature is compatible today with Gmail and Outlook.”

July 27, 2022

On the web

Klarna’s Fall From Grace Calls Into Question Unicorn Board Valuations

Crunchbase News

“The explosive growth in value and funding for startups on The Crunchbase Unicorn Board appears to be leveling off as 32 companies joined in June, adding $49 billion in value and $7.7 billion in funding to the board. In addition, payment fintech Klarna’s massive downround this month calls into question the board’s $4.6 trillion value in June, as Klarna is now poised to topple from its heady No. 6 spot. Klarna shed $39 billion in value from the board with its most recent $800 million funding that valued the company at $6.7 billion. Klarna is now valued below Europe-based online payments integrators Checkout.com, Rapyd and point of sale payments SumUp, but valued above payments integrator Mollie. This 86% drop also calls into question many highly valued unicorns on the board.”

July 13, 2022

On the web

Blackhawk Network and Klarna Partner to Offer Consumers More Flexible Payments In-Store

Blackhawk Network

“Today, a new partnership between global branded payments provider, Blackhawk Network, and leading global retail bank, payments, and shopping service, Klarna, will extend the ability for consumers to use Klarna’s interest-free alternative payment solutions at a variety of physical retail locations. As consumers expect increased flexibility in the way they shop and pay throughout their everyday purchases, this new partnership will enable the integration into Blackhawk’s vast US network, including categories ranging from grocery to electronics, beauty, and more, by tapping into Blackhawk’s payments technology integration with major retail partners and leaders.”

July 11, 2022

On the web

Klarna Raises $800 Million as Valuation Plunges 85% in a Year

Reuters

“Swedish payments firm Klarna Bank AB said on Monday it had raised $800 million of funds at a valuation of $6.7 billion, down around 85% from the $46 billion price-tag it attracted last year. The tough stance taken by funders comes amid a drop-off in investor interest in fast-growing tech ventures that have yet to turn a profit and are burning through their cash reserves.”

June 28, 2022

On the web

As Klarna and Affirm Falter, a New Breed of ‘Buy Now, Pay Later’ Startups are Stealing the Spotlight

CNBC

“With hype over the “buy now, pay later” trend fading, some investors are betting they’ve found the next big thing. Buy now, pay later companies like Klarna and Affirm, which let shoppers defer payments to a later date or break up purchases into interest-free installments, are under immense strain as consumers become more wary about spending due to the rising cost of living, and as higher interest rates push up borrowing costs. They’re also facing increased competition, with tech giant Apple entering the ring with its own BNPL offering.   But venture capitalists are betting a new breed of startups from Europe will be the real winners in the space. Companies like Mondu, Hokodo and Billie have raked in heaps of cash from investors with a simple pitch: businesses — not consumers — are a more lucrative clientele for the buy now, pay later trend.”

June 27, 2022

On the web

Klarna App is Enhanced With Digital Wallet for Easy Access to Loyalty Cards

klarna

“Klarna, a leading global retail bank, payments, and shopping service today announced the launch of its new Loyalty Card feature in the Klarna App. This allows app users to store and access their physical loyalty cards as digital versions. They can then collect all points and benefits at any merchant without the need to carry plastic equivalents while out shopping in-store. Powered by the acquisition of mobile wallet provider, Stocard, the primary consumer offering now integrates into the Klarna App as a means of further establishing an all-in-one experience that drives convenience and value to consumers’ shopping journey. The feature supports over 8,000 loyalty reward programs worldwide, spanning everything from clothing and beauty to technology and groceries to help ensure that consumers never miss out on collecting valuable points – wherever they shop.”

June 24, 2022

On the web

June 10, 2022

On the web

Klarna CEO Defends Business Despite Massive Losses and Layoffs

CNBC

“Klarna CEO Sebastian Siemiatkowski has defended his company’s business model and the controversial “buy now, pay later” industry. Klarna lets consumers buy things that they might not necessarily be able to afford at that moment in time. Its 150 million customers pay a relatively small amount up front and pay back the rest later.   In an interview with CNBC’s “Squawk Box Europe” on Friday, the Swedish entrepreneur said BNPL is “superior” to the credit card model, claiming that the average Klarna user has an outstanding balance of $50, whereas the average credit card user has an outstanding balance of $5,000.”

June 6, 2022

On the web

Affirm and Klarna Ramp Up Competing Efforts to Attract US Consumers

TechCrunch

“Buy now, pay later has become nearly ubiquitous here in the U.S. As such, companies that offer that technology to merchants are unsurprisingly growing more competitive with each other. Case in point. This past week, San Francisco–based Affirm announced it was making its buy now, pay later technology available to U.S. businesses that use Stripe’s payments tech. This means that a whole slew of companies that were not previously able to offer their customers the option to pay in installments, now can.”

June 1, 2022

On the web

Marqeta Announces Partnership With Klarna To Build Klarna Card, a Transparent Alternative to Traditional Credit Cards

businesswire

“Marqeta, the global modern card issuing platform, today announced it is working with Klarna, a leading global retail bank, payments and shopping service, to power its new Klarna Card. The Klarna Card will bring the company’s popular “Pay in 4″ service to a physical Visa card, empowering consumers to pay over time in four equal, interest-free payments for any in-store or online purchase.”

May 24, 2022

On the web

Can Klarna and Its Rivals Survive an Economic Downturn?

Sifted

“Public markets are down, and banks and economists are grappling with the possibility of an economic downturn. In these uncertain times, even Europe’s best-funded startup is not immune. Yesterday buy now, pay later (BNPL) giant Klarna’s CEO and cofounder Sebastian Siemiatkowski said that the company will lay off 10% of its workforce. The company also quietly announced that pre-tax losses tripled to $250m in the first three months of the year, up from $80m in the same period last year.  It’s a stark reminder of how exposed one of investors’ — and consumers’ — most beloved innovations of the past decade is to macroeconomic headwinds. Since 2019, investors have poured $3.9bn into Klarna and its European rivals like Scalapay, Zilch, Alma and Zilch — more than half of the total investment into European payments startups in that time.”

May 20, 2022

On the web

Klarna to Take 30% Valuation Hit, According to Reports

Alt Fi

“Europe’s most valuable fintech company Klarna is facing a c.30 per cent cut in an ongoing funding round aimed at raising  $1bn, according to media reports. In contrast to other reports from the start of the year, when the ‘buy now, pay later’ giant was said to be courting sovereign wealth and pension funds as new investors at a valuation between $50-60bn. The Swedish company last raised cash in June of 2021 at a $45.6bn valuation, and previous to this at a $10.6bn valuation in September of 2020. Owing to explosive growth in the BNPL market during the pandemic as well as rapid geographical expansion, Klarna has scaled to 150 million global customers”

May 12, 2022

On the web

Klarna Launches Virtual Shopping, Bringing the In-Store Experience to Online Shoppers

Klarna

“Klarna, a leading global retail bank, payments, and shopping service, today announced the launch of its Virtual Shopping offering, bringing the best of in-store to the online experience. Virtual Shopping by Klarna enables consumers to browse and buy online with confidence by connecting them directly with in-store experts through live chats and video calls to receive product advice and inspiration. For retailers, Virtual Shopping empowers in-store teams to bring their expertise beyond the walls of physical stores to millions of shoppers online. By using the new merchant-facing Klarna Store App, in-store teams can share photos and videos of items and demo products live directly from the store floor, from home, or even from emerging dark store concepts. This in turn drives brand engagement and loyalty while reducing return rates. The launch builds upon the successful acquisition of Hero, a social shopping platform and leader in virtual shopping services, last year.”

May 4, 2022

On the web

Buy Now, Pay Later Will Soon Affect Your Credit Score in the UK

CNBC

“Buy now, pay later giant Klarna says it will start reporting data on customers’ usage of its products to credit bureaus in the U.K., gearing up for incoming regulations aimed at reining in the sector over fears it is putting young people into debt. Starting June 1, the Swedish fintech firm will share information on whether Brits paid off an installment loan in time or are falling behind on their payments to TransUnion and Experian, meaning such data will now start to appear on their credit reports. Klarna has around 16 million users in the country.”

March 18, 2022

On the web

You Can Gas up Now, Pay Later

Protocol

“As gas prices continue to increase across the nation amid the Russian invasion of Ukraine, “buy now, pay later” companies like Klarna and Zip have partnered with gas stations to provide consumers with options to stretch out their payments. Both Klarna and Zip are payment options at Texaco and Chevron gas stations, where you can choose to split up your (now inevitably sky-high) gas payments into four payments due over six weeks.”

July 10, 2020

On the wires

Klarna Unveils A New Initiative to Encourage Smarter Shopping

“Klarna has today launched KlarnaSense, a new initiative to encourage consumers to shop smarter by purchasing the right things, at the right time. Our brains consume and process approximately 11 million pieces of information per second in order to make a decision – all of this subconsciously.  Those decisions are effortless and quick, but far from considered, and can lead to impulse buying. KlarnaSense uses retail psychology to promote more mindful shopping, challenging consumers to engage their conscious brain by asking themselves three simple questions before they head to the checkout: Do I love it? Will I use it? Is it worth it?”

April 10, 2020

On the wires

Consumers Shift Buy Now, Pay Later E-commerce Spending Away From Apparel and Footwear and Toward Health & Beauty and Leisure Categories

“Klarna, a leading global payments and shopping provider, today released new data that indicate consumers in the US are shifting their e-commerce spending away from apparel, footwear and accessories and toward health and beauty and leisure items as the COVID-19 outbreak continues. The company analyzed all transactions made through the Klarna app, which allows consumers to shop from any online store, to identify what product categories Gen Zers, millennials and Gen Xers are shopping for most often using Klarna’s flexible payment options.”

February 14, 2020

On the wires

Klarna Acquires the Italian `Buy Now, Pay Later’ Startup Moneymour

“Klarna, one of the world’s leading smooth shopping and payment providers, today announced an agreement to acquire Moneymour, an Italian payment company, from the founders and minority investors. Through the acquisition Klarna gains access to intellectual property to further improve underwriting capabilities, and additional expertise and competence, as the full Moneymour team will join Klarna. This acquisition also marks the first step in launching Klarna’s latest product development hub in Milan.”

August 2, 2019

On the wires

Klarna and TOMS Pair Up for Payments

prnewswire

“TOMS has partnered with Klarna, the leading global alternative payments provider, to give shoppers in the U.S. two new options at the online checkout to pay later in either four equal installments or in 30 days – with no interest or fees. TOMS engages customers by integrating them into their giving strategy, and flexible payment methods will allow more people to participate in TOMS’s goal of building a better tomorrow. “TOMS is excited to increase accessibility to our brand with Klarna payment options,” said Ryan Slyper, Vice President of Ecommerce from TOMS. “We hope to empower our customers by giving them options on how to make their purchase and choose how that purchase will make an impact. Customers can choose for their purchase to contribute to issues such as safe water, mental health, shoe giving, ending gun violence, homelessness, and equality.”

June 27, 2019

On the wires

H&M and Klarna Grow Partnership to US

prnewswire

“Today, H&M and Klarna announced that they have expanded their current partnership agreement to also include the US market, in the development of an unrivalled payments and shopping experience across touchpoints. Together, H&M and Klarna are aiming at further integrating H&M’s digital and physical stores to give customers a seamless, personalised and engaging shopping experience no matter where, when and how they shop.  The partnership extends across H&M channels, online as well as in-store, and will provide frictionless and flexible payments, including Klarna’s leading ‘Shop now, Pay Later’ full product offering, as well as a streamlined post-purchase experience for deliveries and returns. This will be managed through the next generation of the H&M app and H&M’s loyalty program, with the overall objective to create an outstanding end-to-end shopping experience for fashion fans that is even more inspiring and relevant. The new feature is currently available for H&M members only, as H&M aims to create the world’s best customer loyalty program.”

April 29, 2019

On the wires

Klarna Posts Solid Growth in 2018

“With the tremendous amount of opportunities ahead for the company, the strong financial performance and momentum gained in 2018 with a 36% increase in sales volumes to USD 29bn1 (SEK 252bn), and a 31% increase in total net operating revenues to USD 627m (SEK 5,451m) will provide a solid foundation for continued growth. Klarna’s offering continues to resonate with consumers, merchants and partners across all markets as demand grows steadily. Klarna is now partnering with over 130,000 merchants across verticals, with over 25,000 newly added in 2018 and existing partnerships both deepening and expanding across markets. There is now an average of 1 million transactions a day running on the platform.”

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