Klarna – Europe’s most valuable private tech company

Klarna – Europe’s most valuable private tech company
September 20, 2023 Off By zswes45sd

Klarna Bank AB, which is commonly known as Klarna, is a Swedish fintech company that has made a significant impact on the online financial services industry. Klarna is a Swedish company that offers  online financial services like direct payments, payments for online storefronts, and post-purchase payments. Founded in 2004, Klarna has rapidly grown into one of the leading providers of online payments and post purchase financing options. 

The company’s aim is to simplify the purchasing experience for consumers and make it easier for merchants to process payments. 

The company has more than 4000 employees, the majority of whom work at the company’s headquarters, which are located in Stockholm and Berlin. In 2011, about 40% of all e-commerce sales in Sweden went through Klarna and in 2021, the company handled about $ 80 Billion US Dollars in online sales and in 2021, the company was Europe’s most valuable private tech company, at a $ 45.6 billion valuation. 

The “buy now, pay later” experience provided by Klarna is renowned for enabling customers to make interest-free installment payments over time. Their costs are directly passed along to the merchants, which encourages customers to make purchases by easing the checkout process. Let’s continue and learn more about the history of one of Europe’s largest fintech firms.

Klarna- Values and Services 

The founders of Klarna, Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, had a smart idea, and their vision was simple, to make online payments easier and safer for both retailers and customers. 

The success of Klarna can be attributed to its original approach to financial services. The business at Klarna is very successful, as it can offer a variety of payment options intended to make online shopping more convenient for customers. For example, Klarna was the first to offer installment payments to customers, which is particularly helpful for larger purchases. One of the main reasons for the business’s success is that it has attracted and kept customers who had previously been very reluctant to make significant online purchases.  

Along with offering incredible payment options, Klarna has worked hard to streamline, improve, and make all customers’ checkout experiences more pleasant. A company succeeds when it can offer a solution to the issue the user is having, and for the past 18 years, Klarna has been doing just that. 

The company’s payment platform integrates with a wide range of online storefronts, making it easier for merchants to accept payments from customers. This has been a major selling point for Klarna, as merchants are always looking for ways to improve their checkout process and increase conversions. 

Building customer trust has been a key component of Klarna’s success, and the company’s emphasis on security and privacy has played a key role in achieving this. In order to safeguard its customers’ financial and personal information, Klarna has over the years put in place a number of measures, such as multi-factor authentications and encryptions, that guarantee the security of user data. This has helped Klarna establish a reputation as a secure and reliable provider of online financial services. 

Another important factor in Klarna’s success has been its commitment to provide excellent customer service. The business has a fantastic and committed support staff that is available 24 hours a day, seven days a week, to assist clients with any problems or inquiries they might have. The emphasis placed on resolving customer issues has helped the business develop a devoted customer base and, as a result, has helped to establish its reputation as a provider of high-quality financial services.

In conclusion

Klarna Bank AB has had a significant impact on the online financial services sector. The company’s innovative post-purchase financing and payment methods, along with its emphasis on security, privacy, and customer service, have helped to position it as a top provider of these services. Klarna’s success story is a living example that when a company is committed to providing its customers with the best services and solves the problem that the customers are facing, it changes the whole game and will be loved by millions.