Payments giant Klarna valuated at $10.6bn
Stockholm-based Klarna is a fintech that provides interest-free payment solutions for consumers buying from online retail shops. Best known for its strong position in the ‘buy now pay later’ market, it regards itself as a “healthier, simpler and smarter alternative to credit cards”.
After a successful few months of consumers ordering online and many using pay later solutions, it was announced yesterday that after a successful investor funding round, $650mn was poured into the firm. With its total valuation now at $10.6bn, it is now the fourth-largest private fintech in the world.
“The shift to online retail is now truly supercharged.” Sebastian Siemiatkowski, Co-Founder and CEO of Klarna commented, adding that there had been “a very tangible change in the behaviour of consumers who are now actively seeking services which offer convenience, flexibility and control in how they pay”.
The company has a strong presence throughout Europe, but part of this round of investment is about its expansion into the United States. The Klarna app has over 12 million active users and 90 million customers worldwide, selling approximately $22bn of goods in Q1 and Q2 of 2020.
The service it provides is attractive to typically tighter budgeted, younger shoppers and has a large focus on the customer experience at the checkout. According to Klarna, some of its 200,000 retailers saw as much as a while offering them as a checkout option. The clear demand and success of the emerging ‘buy now pay later’ market would appear to be enticing to investors. With Klarna’s leap of a $5.5bn valuation in 2019 to its new $10.6bn in 2020, the appeal of the service it provides remains strong.
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG