According to the press release, the initiative comes in honor of Small Business Month. Therefore, between 10-31 May 2021, small businesses can apply to receive one free year of payment services and USD 40,000 worth of free media services from Klarna. Klarna will select 100 small businesses from the applicant pool, focusing on those that were most impacted by the pandemic, including minority and female-led businesses, to receive fee-free payment services and marketing exposure across Klarna’s ecosystem.
According to a recent report by Facebook and the Small Business Roundtable, 22% of US-based small businesses were closed in February 2021, nearing the pandemic peak of 23% in May 2020. Of those impacted, minority-owned businesses suffered the greatest losses, with 27% of minority-led SMEs reporting closures versus 18% of other businesses. Additionally, 25% of female-led businesses reported closures, a disproportionate amount compared to other businesses.
Overall, by donating these services to small businesses, Klarna will enable them to unlock a new customer base, gain greater exposure and product visibility, and build brand affinity through relevant content curation, all with a high level of independence and control.
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