LONDON | Klarna, the online payment solution using invoice payments, will soon launch its service for the UK market. Klarna is assumed to invest £100m in Britain as it further expands its European footprint.
Klarna, handling over 200,000 transactions per day, will be based in London and has plans to roll out further across the UK. The company reaches 25 million customers and reported revenues of €200 million (£160m) during 2013. The UK roll-out is Klarna’s latest move to grow its reach in Europe. Last December, Klarna bought German rival SOFORT (read article here) for more than € 150 million (£120m), giving it a 10 percent share of the e-commerce payments market in Northern Europe.
Klarna to challenge PayPal
Sebastian Siemiatkowsk, Klarna’s chief executive, is keen to tackle new markets such as Britain where PayPal dominates. The investment plans will be announced today at the launch of London Technology Week in Shoreditch. Klarna, which was founded in 2005, is backed by the likes of General Atlantic and Russian investor DST, one of Facebook’s biggest shareholders.
Klarna offers safe and easy-to-use payment solutions to e-stores in Europe and was founded in 2005 with the ambition to make e-commerce safer and simpler. At the core of Klarna’s services is the concept of after delivery payment, which lets buyers receive ordered goods before any payment is due. At the same time, Klarna assumes the credit and fraud risk for e-stores so that sellers can rest assured that they will always receive their money.
Klarna’s vision is to enable trust and to offer a frictionless buying experience to buyers and sellers across the world. Today, Klarna’s payment solutions are integrated by more than 18,000 online shops in Sweden, Norway, Denmark, Finland, Germany, Austria and the Netherlands.
Sourced from London Week of Technology, June 16th, 2014