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Klarna emerges as the leading fintech startup in Europe. It has more than 190,000 merchants from all over the world as its partners.
Swedish fintech firm Klarna has become the undisputed champion in the fintech space. Sources indicate that the gains made his year alone has put the firm light years ahead of its peers and competitors. The e-payments firm has indicated that about 60,000 merchants have been added to its network and that it has created linkages with about 190,000 retail partners in addition to 16 million new users of the service as well.
Moreover, it has emerged that the fintech firm is now worth about $5.5 billion which of course makes it the biggest fintech firm in Europe at the moment. As such, Klarna is now an emerging unicorn in the fintech space and this will go a long way when it intends to raise capital from financial markets as well.
The company has indicated that among the new partners it has signed on major merchants such as River Island, Expedia, Michael Kors, Wayfair, Abercrombie & Fitch, Zara, JD Sports. Microsoft and H&M have been included in the mix too. This further expands its reach and shows the resilience of its “buy now, pay later” model which has proven to be a hit among consumers.
What has made Klarna so interesting to both merchants and users is the way and manner in which its payment services work. Klarna offers all sorts of flexibility for the users making them trust its brand with 30 days delayed payments and flexible payment options of up to four years too.
With a significant increase in consumer spending during this holiday season, the firm is set to make a killing the business model has proven itself to be very effective among online shoppers who use the service.
Klarna as a startup is backed by stars such as rapper Snoop Dog and others. This already has given the brand the required star power to rise above its competitors. In addition to this, the various innovative offerings that the fintech firm makes to customers via various events also show that customer personalization is key in terms of choices for any firm to rise in today’s’ “me, myself and I” world.
While many pundits have indicated that services such as Klarna have created a dangerous paradigm for shoppers in which shoppers may now become addicted to shopping thus creating a new debt bubble which may burst over time, others have seen this as a unique opportunity to be able to redefine online shopping choices, tendencies and consumer behaviors as well.
Klarna Vs. Paypal: Who will Win?
With Klarna making giant strides in the online retail space, many are wondering if Klarna may even take some of Paypal’s market share. Klarna has come to the table with a different sort of appeal which shoppers at this time are in tune with. On that basis, this has created a niche space that the fintech company will thrive.
On the other hand, the $460 million funding round which took place in August also shows that the fintech firm may indeed go head-to-head with Paypal indicating a battle for turf in many regards. As Klarna is fast becoming the darling of investors which is demonstrated by the variety of partners that participated in the round in August.
As to if they will go head-to-head it remains yet to be seen but one thing is certain: Klarna will become IPO ready anytime from now.