Simon Taylor’s Post

Klarna Checkout, we hardly knew you! (And, yes, that's a very US-centric perspective.) In an interesting deal, Klarna sold its checkout product for $520 million to a consortium of financial investors. Klarna's explanation for the sale is pretty simple: Klarna Checkout was basically competing with PSPs like Adyen and Stripe, who are important distribution partners for Klarna's flagship BNPL and financing products. Its new owners will operate it as a standalone checkout solution moving forward. But the optimized checkout business is a tough space with plenty of competition. PayPal, Stripe, Shopify, Bolt and several others have invested lots of time and money in this space. New entrants continue to come along, including Paze℠, the newly-launched wallet from Early Warning®, owned by a consortium of the US's largest banks. The US continues to be Klarna's growth market, but I'd argue that Klarna Checkout has failed to gain much traction in the States. However, Klarna notes that its checkout business has been profitable, particularly in Europe. Will the new standalone version see growth in Europe and the rest of the world? More details here at PYMNTS: https://lnkd.in/gq23Jk3z and from Finance Magnates: https://lnkd.in/gpje2jkT #payments #checkout #bnpl #klarna

Adyen stock is down 35% after H1 results because they grew “only” 23% compared to 49% a year before. Adyen is a payment processor provider and is one the best examples where European tech can compete with the US 👇 This is mostly due to increasingly competitive pricing in the North American eCommerce market, which is Adyen's second-largest market after its European base. Competitors just won by lower prices, which brings another fear for investors - Commoditization - a process in which a product is essentially deemed identical to the same class of offers presented by a rival company. Commoditization allows consumers to make purchasing decisions based solely on the price tags of the item in question. This might start happening in the payment industry. If you look at Adyen's results they are still impressive 📈 - Net revenue was €739.1 million, up 21% year-on-year (forecast was 25%) - Processed volume was €426.0 billion, up 23% year-on-year - EBITDA $320M I think a 35% drop is just too much because all metrics look pretty good and also considering that Adyen is more profitable than its competitors. $13B of market cap is lost overnight. No wonder Stripe is afraid to go public. #paymentprocessing #fintech #ecommerce

🚀 Exciting Partnership Alert! 🚀 In the dynamic world of Buy-Now-Pay-Later, where trends shift and challenges arise, this unexpected partnership has sparked curiosity among many in the payment space. The burning question: Why did Klarna and Adyen choose to team up? The story behind this strategic move. Klarna, faced the need to adapt to Card-focused markets like the UK, US, and Australia. With the surge in volumes, Klarna found itself collecting repayments via the Mastercard and Visa rails. Enter the Klarna Card – a Visa Debit Card, issued by WebBank, opening up avenues with merchants who don't traditionally accept Klarna. The real magic lies in the synergy of Issuing and Acquiring – enter "On-Us Traffic." Similar to Uber's approach with their Uber Pro Card, Klarna can now negotiate directly with schemes, potentially saving up to #200 basis points in Interchange, contributing directly to their bottom line. An invaluable optimization move as Klarna gears up for its IPO. But this partnership isn't a one-way street. Adyen, fresh off reassuring investors, sees this as a strategic move to generate billions in new volume. Beyond the growth perception, the partnership aims to strengthen merchant relationships, with shared brands like Nike, NET-A-PORTER, and lululemon, who leverage both cards and Klarna. Unlocking the true potential, Klarna and Adyen will collaborate closely, sharing data and working on joint projects to enhance merchant conversion and cost optimization. This not only solidifies their Lock-In strategy but sets the stage for sustained success. As Klarna maintains a direct consumer relationship akin to PayPal and Adyen expands its B2B Embedded Finance features, the partnership promises a mutually beneficial future. The question remains – do you think this alliance is a game-changer for both parties? Share your thoughts below! 👇💡 #Klarna #Adyen #PartnershipInAction #PaymentInnovation https://lnkd.in/dPTHvMb4

Klarna adds subscription plan Klarna, with 37 million U.S. customers, is strategically launching a $7.99/month subscription service, aiming to diversify beyond BNPL. The move, post a successful Utah pilot, offers subscribers perks like waived service fees, doubled rewards points, and exclusive retail offers. This initiative aligns with Klarna's IPO plans, signaling an ambition to prove its ability to generate new revenue streams. The evolution mirrors industry trends, as BNPL firms like Afterpay and Affirm also explore additional revenue channels amid a shifting economic landscape. The broader insight: surviving post-pandemic, these fintech giants navigate slower growth by adapting and expanding service portfolios. #FintechEvolution #Klarna #BNPL https://lnkd.in/d_AeY2eP

As a Founder, would you sell a revenue generating vertical to turn your competitors into partners? Well that's what Klarna did recently by selling its online checkout business for  $520 Mn to win support of Adyen & Stripe and refocus on its core BNPL business ahead of its $20 Bn US IPO target. 🤔 Affirm with almost revenue of ~2Bn USD is trading at $8.8Bn down from its highs of $40Bn during 2021. Will this help Klarna grow past Affirm?(see historical qoq comparative growth in fig) Sebastian Siemiatkowski's recent podcast at Acquired is a treasure trove for any fintech founder. 🛍 OG BNPL insight - Target merchants who were ready to trade off immediate cashflow for the business growth (i.e. having good cash conversion cycle already). They just didn't want to getting into handling customer default risk or collection activities. 👤 Consumer prepaid most of the times (what may be current CC transactors) => Klarna got free period to rotate cash and build insights into exact brand-product-SKU for financing further BNPL (Wrote a detailed deep dive on BNPL a few years back - link in comments) ↗ With incoming funds, Klarna expanded into broader checkout solutions (all payment methods beyond BNPl). Klarna kept getting higher and higher valuations on the narrative to bypass even Adyen. ⏩ Today, Klarna aims to solidify its BNPL position on backs of Stripe & Adyen by letting go of checkout business (apparently still keeping some indirect revenue sharing agreement) ⚔ Even with EU dominance Klarna faced challenges in cracking US BNPL with likes of Afterpay, Affirm already serving big brands. 💡Klarna innovated a browser led ecom shopping experience that enabled customers to shop from any brand website say H&M with a seamless BNPL product. => App downloads became the sales pitch of Klarna to other big merchants (instead of existing logos)! 🌍 While BNPL players like Zestmoney folded in India, lessons from Klarna's 19-year journey highlight strategic resilience amidst regulatory changes, changing market dynamics and funding winters. If you're fintech founder today trying to make a mark in the hypercompetitive personal credit space, think not like a payment enabler or lender of last resort for underserved. Instead try to become the digital financial advisor for every persona... ❓ What will be new iPhone on EMI actually cost you incase you fall sick this month end? ❓How will min due payment on your last month's credit card bills affect your yearly travel plans? ❓Should you finance your car purchase with your mutual funds or take a secured loan on it? #fintech #Klarna #bnpl #credit #lending #tech P.S: one of the remarkable callouts in the podcast was to footballer Zlatan Ibrahimovic's maxim: anyone playing in champions league final(high stakes outing) should know that he's been trained to handle that very same world class pressure!

🚨 𝗡𝗲𝘄𝘀 𝗙𝗹𝗮𝘀𝗵: Klarna is launching a monthly subscription plan in the U.S. called "Klarna Plus" to lock in its heaviest users ahead of an initial public offering this year, the company told CNBC. The product is set to be announced later Wednesday and will cost $7.99 per month, the Stockholm-based company said. Users of the subscription plan, named Klarna Plus, will get service fees waived, earn double rewards points and have access to curated discounts from partners including Nike and Instacart, according to Chief Marketing Officer David Sandstrom. Buy now, pay later services such as Klarna and Affirm have surged in popularity in recent years as more Americans rely on a new, fintech-enabled form of credit. The services typically break up a purchase into four payments. When Klarna users shop outside the firm’s network of 500,000 retailers — at places such as Walmart, Target, Amazon and Costco — they pay $1 to $2 in transaction fees. “The main proposition of Klarna Plus right now is that you don’t pay any service fees,” Sandstrom said. “So if you love Klarna and if you love shopping at Target and Walmart, it makes a ton of sense financially.” The approach is especially timely as Klarna nears an IPO that could value it at more than $15 billion, Sky News reported in November. Klarna CEO Sebastian Siemiatkowski told Bloomberg this week that a listing in the U.S., the firm’s largest market, was probably imminent. More info in the complete source article: https://lnkd.in/eybvr_TM Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]  #fintech #klarna #buynowpaylater #bnpl #payments #paytech #digitalpayments #digitalbanking #bankingapp #financialtechnology #fintechindustry #fintechnews 

Buy now, pay later (BNPL), especially popular with younger users, has seen significant traction. One of the biggest names in the space is Klarna whose platform allows users to split purchases into installment plans at the point of sale, often with lower fees than credit cards. Following the news that Klarna inked a massive deal with Uber to make the payments platform available to ride-share customers in the U.S., Germany, and Sweden, the natural assumption might be that Klarna would include BNPL functionality for Uber users. Read more: https://ow.ly/1QnN50Rrbbe #payments #credit #BNPL #PayNow

🛒➡ #BNPL Provider Klarna is Building Global Digital Technology 📲🌍 Klarna is a Swedish fintech company founded in 2005, known for its innovative online payment solutions and financing services. It offers "Pay Later" and financing options for consumers, simplifies online shopping for users through its app, and partners with e-commerce businesses to improve checkout processes. Klarna has a global presence, prioritizes security, and competes with other fintech companies like PayPal and Afterpay. Its success lies in its adaptability to changing consumer preferences and commitment to enhancing the online shopping experience. Buy Now, Pay Later (BNPL) is a rising payment trend allowing customers to make purchases in installments, gaining popularity due to:  💲 convenience,  💲 instant access to products,  💲 transparency, and  💲 retailer partnerships. Younger generations find it appealing and appreciate the financial flexibility it gives, but users must handle payments carefully to prevent fees and overspending. Klarna's Remarkable Turnaround and Strategic Expansion in H1 2023 via Linas Beliūnas 💥 Klarna has achieved profitability after a challenging period, with Q2 2023 marking its first month of net profit. 💥Key highlights from H1 2023 include a 17% YoY revenue increase, a 41% decrease in credit losses, and strong growth in gross merchandise value (GMV), driven by partnerships and markets like the US and UK. 💥Klarna is strategically building a #SuperApp, expanding into banking services, launching a Pay Now option globally, introducing the #Klarna Card, offering a commerce search, shoppable video, and a Creator Platform, aiming to become the ultimate shopping destination and the "Google of Shopping" in the future. With its profitability, sales growth, and strategic expansion plans, Klarna seems to be on the right track. But it will contend with legislative obstacles and competition from powerful tech companies. Its capacity to provide distinctive value to customers and businesses while upholding financial stability and legal compliance will determine its ability to succeed.  But over to you #fintechs - How do you think will Klarna differentiate itself in the sea of the ever-evolving #fintech landscape? 🔍 Source: Linas Beliūnas | Sacra

Klarna sells it checkout solution (KSO) to a consortium led by blq. 📰 ❗ With the divestment of its checkout, it moves away from what was their core business merely a decade ago. It sends clear signal to the payment ecosystem that, at least Klarna sees its long time profitability elsewhere. What will it mean to the ecosystem as a whole? ❓ Will it lead to further changes? 💱 How will competitors react and adapt its business? ⏩ https://lnkd.in/dxauCMJg

What a week it was for Klarna 🤯 Here's 𝟲 𝗕𝗜𝗚 𝗡𝗲𝘄𝘀 𝗨𝗽𝗱𝗮𝘁𝗲𝘀 from Klarna, and one quick question 😉: 1️⃣ Klarna is launching a 𝗖𝗿𝗲𝗱𝗶𝘁 𝗖𝗮𝗿𝗱 in the United States 🇺🇸, they told TechCrunch in an exclusive interview: “It was one of our most asked for products,” Read more: https://lnkd.in/efjqD7NR 2️⃣ ChatGPT parent company OpenAI shared that the Klarna’s adoption of the technology is estimated to yield a $𝟰𝟬 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗺𝗽𝗿𝗼𝘃𝗲𝗺𝗲𝗻𝘁 in the company’s profits this year. Read more: https://lnkd.in/eDzqhSE7 3️⃣ Klarna is selling Hero , the virtual shopping platform it acquired in 2021, to video commerce outfit Bambuser in a deal worth around EUR1.3 million. Read more: https://lnkd.in/eahY3BWh 4️⃣ Klarna scores 𝗺𝗮𝗷𝗼𝗿 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗱𝗲𝗮𝗹 𝘄𝗶𝘁𝗵 𝗨𝗯𝗲𝗿 ahead of hotly anticipated IPO. You can now use Klarna to pay for your Uber and Uber Eats in the US, Germany and Sweden. Read more: https://lnkd.in/eW5jhken 5️⃣ Klarna also announced the expansion of its 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝘄𝗶𝘁𝗵 𝗘𝘅𝗽𝗲𝗱𝗶𝗮 Group to the US 🇺🇸 market, enabling them to book flights and stays using its interest-free Pay Now or Pay in 4 options. Read more: https://lnkd.in/e3GNUhjB 6️⃣ Also last week, Karma unveiled a super-speedy-checkout flow for restaurants, using Karma x Klarna bringing the check our process down to 𝟭𝟭 𝘀𝗲𝗰𝗼𝗻𝗱𝘀 (the average checkout time at a restaurant is 5m 25s!). Read more: https://lnkd.in/eEkKskuP Finally, now over to you: Did you notice Klarna's recent 𝗯𝗿𝗮𝗻𝗱 𝗿𝗲𝗳𝗿𝗲𝘀𝗵 (check out the picture below👇)? Which one do you think looks best❓ Let me know in the comments which logo you like most! 𝗕(efore) or 𝗔(fter) 😉 Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] Get the most important FinTech news and analysis in a 5 minute daily briefing you’ll actually look forward to reading. Sign up now: https://lnkd.in/eiQBxdTW