Klarna, backed by Silicon Valley venture-capital company Sequoia, lets online shoppers order items with little more than their email address and zip code. Klarna then pays the online merchant and follows up with customers by sending them an invoice. The company is currently making 95% of its revenue in the Nordics and the DACH region.
The app - later on to be accompanied by a Klarna payment card - is instantly available on the company’s core markets in the Nordics and continental Europe. The company will follow up with UK and US during the second quarter.
More than that, the app can be used for instance to arrange returns of items, set up different payment timelines through Klarna or for creating a checklist of invoices to be paid. Users can also check out the latest deal through an Instagram-type interface.A flagship feature in the app is that each purchase is accompanied by a picture that has been uploaded directly from merchants. Although the app will initially only show a consumer’s Klarna purchases, the company wants to add a customer’s entire financial history and thus make the app relevant for all their e-commerce purchases.
Klarna says it will add this feature well ahead of the full roll-out of PSD2 regulation, which will force banks to share such transaction history with fintech players by the summer of 2019.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now