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Industries
Fintech
Financial Services
Company Size
1,001-5,000
Company Stage
Growth Equity (Venture Capital)
Total Funding
$4.8B
Headquarters
Stockholms kommun, Sweden
Founded
2005
Klarna provides online payment solutions that allow consumers to make purchases immediately and defer payment to a later date, often without interest if paid within a specified period. This buy-now-pay-later model enhances the shopping experience by offering flexible payment options, which can increase sales for merchants and provide convenience for consumers. Klarna operates in multiple markets across Europe, North America, and the Asia Pacific region, facilitating transactions between consumers and merchants. The company generates revenue by charging merchants a fee for each transaction processed and from consumers who choose extended payment plans that may include interest or fees. Klarna's goal is to improve the online shopping experience while ensuring transparency and reliability in its operations.
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Total Funding
$4786.7M
Above
Industry Average
Funded Over
9 Rounds
The buy now, pay later pure plays like Klarna and Affirm might get a lot of attention these days. However, card networks have a piece of the BNPL pie as well. From apparel to electronics to medical bills, today’s shoppers increasingly expect a flexible payment solution at checkout, and for that, no company worth its salt can afford to miss out on the revenue and the customer experience. The trend certainly has attracted attention at Mastercard. As part of the “Pay Later Unpacked” virtual event at PYMNTS, Seema Chibber, executive vice president of Core Products for the Americas, shared insights into how Mastercard aims to integrate installment and BNPL features more deeply into its network infrastructure, the company’s partnership-driven approach, and the potential to expand BNPL into verticals beyond retail
According to a report from Blavity, the financial technology company Klarna is partnering with OnePay to replace its major rival, Affirm, at Walmart locations across the country.
The ultimate fate of the Consumer Financial Protection Bureau (CFPB) has yet to be settled, but the past few weeks have seen the CFPB rescind several orders and rules aimed at banks and FinTechs.For buy now, pay later (BNPL) providers, an interpretive rule classifying BNPL firms that provide pay-in-four options as credit providers is on its way to being dropped. The rule mandated that consumers using BNPL must be afforded the same legal protections that are tied to credit cards, as covered under Regulation Z. We noted in May upon the announcement that BNPL users can dispute charges or demand refunds, while BNPL lenders pause payments during those disputes.In a Wednesday (March 26) court filing in Washington, D.C., CFPB said that it will revoke the rule, which BNPL providers and their trade groups have said would impose operational burdens.A Stay in Litigation and a RevocationIn terms of the mechanics, the Financial Technology Association — which had filed suit against the CFPB and the Bureau asked the presiding judge to “stay” the legal battle — noted that “the Bureau is planning to revoke the Interpretive Rule. To allow time for the Bureau to do so, the parties jointly request that the Court stay this litigation until the Interpretive Rule is revoked. The Bureau proposes to provide a status report with the Court by June 2, and every 30 days thereafter, regarding its progress toward revocation.”The filing also went on to state that the revocation would render “moot” the issues raised in litigation. The rule took effect at the end of last July, but firms were given further time to comply under a grace period.As PYMNTS reported in the wake of that October filing against the CFPB, the Financial Trade Association — which counts FinTech Block and BNPL provider Klarna among its members — contended that “the new rule is arbitrary and capricious because it fails to consider how its new disclosure obligations are ill-fitted for BNPL products, demonstrating that the CFPB fails to consider and address important aspects of how BNPL products function on the ground.”In particular, with discussion of what would amount to additional operational burden, the FTA suit had alleged that the periodic statements would have been “infeasible for BNPL products” and detailed that the structure of credit cards, where billing statements must be sent at least 14 days before payment is due, is such that “consumers can make numerous purchases at different times during a billing cycle with payment due for the collective amount on the same date irrespective of when the purchase occurred during the billing cycle.”BNPL loans typically require payments in two-week increments, so it is “impossible to send periodic statements for all loans collectively” at least 14 days in advance of the next payment, the FTA argued
Wafi Inc. is excited to partner with Klarna to enhance the convenience Wafi Inc. offer, including flexible payment options for its DashPass Annual Plan, the most affordable way to order on DoorDash with added streaming and ride benefits at no extra cost.
The partnership between DoorDash and Klarna introduces the innovative 'Eat Now, Pay Later' feature, allowing customers to experience immediate satisfaction while managing their payments.
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Industries
Fintech
Financial Services
Company Size
1,001-5,000
Company Stage
Growth Equity (Venture Capital)
Total Funding
$4.8B
Headquarters
Stockholms kommun, Sweden
Founded
2005
Find jobs on Simplify and start your career today
Discover companies similar to Klarna