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Klarna Cashback Drives $100M-Worth of Sales in Just Six Weeks Erin Jaeger, head of North America for Klarna says, “The take-up has been phenomenal! Cashback is driving a huge uptick in conversion for our merchant partners, and consumers are earning money while they shop… and after they stop!”  https://lnkd.in/eF2SNgb8 Sebastian Siemiatkowski Camilla Sanders Sofia Back David Sandstrom Joachim Reuss David Fock David Sykes Niclas Neglen #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Klarna reports a SEK260 million profit in Q3 and strikes some partnerships ahead of holiday season #Klarna, the AI-driven global #payments network and shopping assistant, has reported a net profit of SEK 216 million for Q3 2024, marking its second consecutive profitable quarter. Under the leadership of CEO Sebastian Siemiatkowski, Klarna has returned to a phase of profit and growth, bolstered by strategic partnerships and rapid adoption of next-generation digital banking products. This momentum sets the stage for a strong holiday season, as Klarna continues to enhance its footprint in the global payments market. Strategic partnerships with key players like Worldpay, Adyen, Apple Pay, and Google Pay are expanding Klarna's reach to hundreds of thousands of new merchant checkouts and in-store terminals worldwide. Recent launches with brands such as Zoom and Lenovo further emphasize Klarna's role as a unified global payments partner, helping merchants increase average order values, conversion rates, and overall sales. The company is positioned to capture a significant share of the $450 billion payments market opportunity through its growing global network. Klarna's innovative digital banking products, such as Klarna Balance and Klarna Cashback, have quickly gained traction, with 1.6 million users in just three months and nearly $5 million returned to customers through rewards. These features enhance customer engagement but also support merchant sales growth, contributing to a 16% increase in gross merchandise volume (GMV) and a 23% revenue boost for the first nine months of 2024. The U.S. market remains a strong growth driver, with revenue up 33%, supported by partnerships with brands like Fashion Nova, Expedia, and Uber. The announce on Klarna website in the first comment.

A reflection on why Klarna changes the strategy for payments to “Pay now”, instead of the winning concept “Buy now pay later” (BNPL) and why this is a logic step forward. ℹ Yesterday David Fock, Chief Product Officer at Klarna, stated in an interview in Svenska Dagbladet that Klarna changes the strategy and would like the customers to “pay now”, and only sometimes use the function of “pay later”. David Fock states that this will possibly lower the credit loss levels (see link in comment). 🔎 Klarna has a unique position and are with the new strategy creating new customers behaviour that is transforming the concept of embedded payments. This may seem like strange strategy, since the BNPL is one of the core offer that Klarna has, but you will have to understand this: ✅ The cost: To lend money to all purchases, is a huge cost. The customers that are paying at the first due date are not paying enough to cover the credit cost. ✅ The average risk: To lend money always includes a credit risk. And that risk will on average be lower, if most transactions are paid up front. This is also a reason for the statement that the credit losses will be lower, since on average there will be more customers paying up front. ✅ The image: Klarna is moving from a credit institute to a shopping experience solution. Previously this year they sold their check-out to Kustom. The focus is clearly on making the best shopping journeys with AI-functionality to increase the customer experience. And with Klarna's new cashback-program there will be even more focus on creating loyalty towards their customers and this will also strengthen the partnerships they are building with the retailers. There are similarities to a coalition program, and this will have a lock-in effect of the customers as well as the partners to Klarna. ✅ Additional data: More transactions mean an opportunity to reach new customer segments and gather even more data from the purchases. Today’s 85M customers and 2M transactions each day from 500K merchants will increase in the future and Klarna will hold even more information of customers and their transactions. 🎯Klarna is creating a unique loyalty program, with both end-users and partners. I admire the huge database that Klarna is building with millions of purchase transactions and the insights they can make of the end-users' purchase behaviour. 🎯Klarna is also twisting the concept of Embedded Payments to not start the journey at the partners’ shops only, but to be an important player from the start of the shopping process. And instead of asking partners if they would like to use Klarna, it is the opposite way around – partners are asking to be a part of Klarna’s customer journey. It is very clever. #EmbeddedPayments #Banking #Payment #CustomerExperience #BNPL #BuyNowPayLater #payNow #Debit #Strategy #Transactions #Database #Klarna #Qinshift #Avenga

Klarna is launching their credit card in the U.S. This is what Andrea Rusnak, Director, Payments Group at Engage fi thinks about this move: Klarna requirements for U.S. citizens to be eligible is that you are at least 18 years old, have a bank account, and can receive texts. Applicants must also have a “positive credit history.” Klarna is a Buy Now Pay Later company and we’ve seen that BNPL usage is two times more likely than other generations to utilize this type of payment option at online checkout. This allows your consumers the ability to purchase goods and services that they need now but offers them the flexibility in the payback option to their financial institutions. This is a short-term financing option that has become more popular among consumers and retailers. Read the story here: https://lnkd.in/djj62icD

Merchants Continue to Choose Klarna, with 100,000 New Retailers Joining Klarna’s Network in One Year “The goal is to make Klarna ubiquitous, with Klarna in every checkout so we can provide consumers everywhere with a more flexible and fair payment option. This growth reflects the trust both merchants and consumers continue to place in us to deliver seamless, flexible payment options,” said David Sykes, Chief Commercial Officer of Klarna.“ I can only call this a win-win: the more merchants we have on board, the more accessible our services are to customers, and the more customers using our services, the more beneficial it is for merchants.“ https://lnkd.in/eW5wJ3a9 Daniel Greaves Camilla Sanders David Sandstrom David Fock Niclas Neglen Sebastian Siemiatkowski Elias Nilsson #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Klarna: soon available with HiPay! 🙌 Currently being integrated by our experts, the Klarna solution will enable you to boost your business by offering several convenient payment options, which differ by country: 👉        Pay in 30 days, 👉        Pay in 3, 👉        Financing, 👉        Pay now. With notably 550,000 merchant partners and 150 million end customers, Klarna will thus meet the ever-changing needs of your market to take your payment strategy to the next level with HiPay! 🚀 Read our latest blog post for more details on this augmented payment offering for even greater flexibility.👇 #HiPay #Klarna #AugmentedPayments #Flexibility

Are you available for your cardholders at their point of need? “Companies like #Klarna and Affirm acquire customers at the point of need for that one buy-now pay-later purchase by offering an alternative to the bank or credit union card,” Bryce Deeney said. “And once the consumer is approved and downloads the app, these companies try to win the entire relationship — a major threat to traditional issuers.” Read more from equipifi, J.D. Power, and #Affirm on Practical Ecommerce. Dale Laszig #BNPL #buynowpaylater #debitcard #creditunion #banking #payments

Will Klarna be the Super App of North America? 👀 🚀 Klarna just announced Klarna balance account in the US and Europe - its most recent move into the retail-banking services! Klarna is on a mission to transform how we shop and manage our finances, and recently has been diversifying and expanding beyond its BNPL roots. It just announced the Klarna 'balance' account in 12 countries, enabling users to add funds into this account directly from their bank account, receive cashback rewards for shopping in the Klarna app or receive refunds from returned items - all within the Klarna app. This follows the launch of the Klarna Card in the US earlier this year. And let's not forget their global payments partnership with Uber, announced earlier this year—another significant step towards integrating services across our daily lives. eCommerce and payments are the backbone of any super app, and Klarna is excelling in both. With a US IPO anticipated early next year, Klarna is surely positioning itself as more than just a BNPL leader. #fintech #superapp #northamerica #patments

📣 Awesome news from Klarna! We're combining Sofortüberweisung with Klarna Payments to bring customers and merchants the best of both worlds! Marrying the familiar Sofort process with Klarna's smoother, more secure payment experience and global reach. 🌍 A decade after Klarna acquired Sofort, it's clear our consumers appreciate both - with a large number of customers using both Klarna and Sofort. By combining the two products, customers can keep track of Sofort payments in the Klarna app and enjoy a smoother, more secure payment experience without entering your bank details each time👌 The integration has led to a 5% increase in conversion rates. 💪 So, ready to experience the best of both worlds?

🚀 Excited to share the latest from Klarna! My team has been hard at work leading the transition to combine Sofortüberweisung with Klarna Payments, and the results are in, showing that making a great product even better can be rewarding. By moving Sofortüberweisung to the Klarna Payments API, we are not only offering consumers and merchants the best of both worlds, but we have also migrated the product onto our powerful Open Banking platform, which is already powering Klarna use cases like underwriting and personal finance worldwide. This integration not only reduces complexity for merchants but also delivers unmatched benefits and a superior consumer experience overall. 🔒Improved Security: Enjoy smoother authentication experiences through the Klarna app while maintaining control over your checkout process. No more hassles with non-SDK integrated native apps or clunky desktop redirects 😉 🛡️Enhanced Purchase Protections: Benefit from buyer’s protection on applicable purchases, giving you peace of mind with every transaction. ⚡Smoother Payments: Consumers can now enjoy a faster and simpler purchasing experience. Stay tuned for more exciting updates in the Klarna Pay Now space – we have some fantastic things in the pipeline! 🌟 #Klarna #Sofort #OpenBanking #FinTech