Klarna UK hits major milestone with seven million customers
While a number of European an...
Europe’s biggest fintech shows no signs of slowing down in its growth as it achieves seven million customers in the UK.
While a number of European and international fintechs are reevaluating their position in the UK, Swedish company Klarna is only strengthening its position in the region as it hits a whopping 7 million customers, and 1.6 million app downloads.
Europe’s largest fintech currently has over 5,000 live merchants in the UK alone, partnering with major brands such as: River Island, ASOS, JD Sports, Gymshark, Made.com, Oliver Bonas, Boohoo Group, Missguided and Topshop. 500 of these retailers have also launched in-store services with Klarna, including Schuh, Thomas Sabo and Halfords. To understand how in-store payments work, click the right arrow at the image header to see Klarna's breakdown.
To date, the US$5.5bn-valued company has now totalled a revenue of over $35bn, ranking it amongst the world’s most prestigious unicorns. Globally, Klarna has over 200,000 merchants, 75,000 of which were added in 2019. With over 85 million customers worldwide, live across 17 markets, its expansion in the UK is clearly part of a wider, global success.
The makings of a great Q1
This news follows shortly on from Klarna's expansion into the Australian market, and the launch of its “Get What You Love” campaign, featuring one of the world’s most influential musicians, Lady Gaga, who is the face of the movement as it seeks to challenge stigma of women proposing to men.
Commenting on the figures, Luke Griffiths, General Manager at Klarna UK, said: “These landmark numbers are testament to the enduring growth we have achieved, by offering customers newfound financial flexibility, enabling shoppers to get what they love, as well as remaining dedicated to our merchant partners across the country.
“The UK statistics are reflective of our global growth story, as we continue to pursue our mission to make shopping simple, safe and smoooth, for both consumers and retailers.”
Did you know? SHIEN is the latest merchant to partner with Klarna to leverage the fintech’s pay later scheme.
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Stripe backs Step - the digital bank for teens
The Series C round raised US$100m in capital from a number of backers, including Coatue, TikTok star Charli D’Amelio, actor Jared Leto, and Will Smith’s Dreamers VC, for the enterprise.
Step provides a free FDIC-insured bank account and Visa card to teenagers. The accounts are backed by Evolve Bank and there is no subscription charge for its usage. Users don’t pay for their accounts and there are also no overdraft fees.
The mobile banking app enables parents to set controls and limits on spending and encourage responsible finances. According to data released by the company, 88% of the platform’s users say this is their first bank account.
To date, Step has seen great success in the marketplace. The company has raised more than $175m from investors and now has 1.5m users.
Stripe, which was founded by Irish brothers Patrick and John Collison, previously led Step’s $22.5m Series A round in 2019.
Step's Series B funding round also brought in $50m, and has a distinctly celeb-tinged reputation with investors including Justin Timberlake and the pop duo The Chainsmokers.
Users get access to a free, FDIC-backed bank account, a spending card and P2P payments platform to send and receive money instantly.
CJ MacDonald, chief executive of Step, said the company is aiming to improve the financial futures of the next generation. “Step is the only banking platform that enables teens to start building a positive credit history before they turn 18 and does not charge fees of any kind.
He has previously spoken about the importance of financial literacy for young people. “Money is just one of those things where I think the more educated and equipped you are early, the better decisions you can make down the road,” he told . “And you can also prevent yourself from making costly mistakes. I mean, the average American doesn't have $400 in emergency savings and pays $350 a year in banking fees. If we can help this next generation just ultimately be smarter and more educated as it pertains to money, I think we'll all be better off.”
Kyle Doherty, managing director at General Catalyst and Step board member, explained, “Gen Z is flocking to modern financial solutions that can be easily embedded within their digital lives and Step has a unique model for how to do this right.”
The news follows on from Stripe’s recent announcement that it plans to acquire TaxJar. The fintech, which builds software for online businesses that automates the reporting and filing of sales taxes, will most likely be integrated with Stripe’s billing services.
Currently, No terms have been disclosed but the Boston start-up had raised more than $60m from investors including Insight Partners.
Stripe chief financial officer Dhivya Suryadevara said of the move, “With TaxJar, we will help millions of internet businesses running on Stripe with their sales tax and make it easier for them to sell internationally.”