Klarna’s “Pay Now” service is now available for users in the US. With the service, customers in the US can make payments to any online retailers where Klarna is available. The fintech, known for its buy-now-pay-later services, will also be introducing its Klarna cards to American customers. With these cards, Klarna’s US users will be able to make interest-free payments in four instalments using the cards, either at a physical store or online.
While the startup works with more than 2,500 partners, American Klarna users were already able to use Klarna’s Express button for checkout. The ability to use “Pay Now” and the imminent Klarna cards promise to give these users a complete Klarna experience – seamless and immediate payments. According to Klarna’s co-founder and CEO Sebastian Siemiatkowski, introducing these Klatna services to users in the US is a natural extension of what has been available in its other markets. Speaking on the incoming Klarna cards, he said that “We are super excited to launch a card in the US. As we have seen in other markets, we want people to use Klarna everywhere. Some will occasionally use Klarna on websites and the app, but when you give them a piece of plastic, they are also highly appreciative and people love it”.
Since it came into the scene, the fintech company has done impressively well. It became Europe’s most valued private firm after raising $639 million in June. Klarna, known fully as Klarna Bank AB, is a Swedish fintech company that provides online financial services such as direct payments, post-purchase payments, and online storefronts. The fintech is known mostly for its buy-now-pay-later scheme which allows people to make purchases of goods and services and pay for them later. Klarna, founded by Sebastin Siemiatowski, Niklas Adalberth, and Victor Jacobson, has its headquarters in Stockholm, Sweden. The company serves different areas and countries across Europe and has an approximated amount of 3000 employees with most of them working at the company’s headquarters.
Klarna has been deemed mature for an IPO but that will not be happening soon. According to what the startup’s CEO said in September, the market volatility at that time was not going to make that happen. “The volatility in the market right now makes me nervous to IPO, to be honest. I think it would be nice to IPO when it’s a little bit more sound. And right now it doesn’t feel really sound out there”, CEO Sabastian Siemiatkowski said. “It’s more likely to happen soon than it was a few years ago. But we have no immediate plans”, the CEO added.
Klarna battles big competitors like PayPal in the US market but that doesn’t seem to be a problem for the company at all. According to him, Klarna’s share of checkouts in the US continues to grow. “It feels like a good opportunity to give them a good challenge,” he added.