The news: The Swedish giant buy now, pay later (BNPL) has strengthened its global presence with new partnerships as part of its aggressive growth.
- Commonwealth Bank of Australia (CBA). Through the Partnership, one of the ABC 10 millions retail traders who integrate Klarna pay no merchant fees for their first six months. Eligible merchants will also benefit from marketing support from Klarna during this time. This partnership is a huge opportunity for Klarna, who first entered Australia robust BNPL in January 2020 and should help expand its distribution network.
- Yoox Net-a-Porter. the to attach allows customers to purchase the company’s luxury clothing and accessories in three or four installments. And with 4.5 million customers in 180 countries through four brands, the partnership can give a substantial boost to Klarna’s global volume. Klarna has recently entered into a number of retail partnerships, such as the merger with Petco announcement last week, helping to attract new users with extended uptime.
The overview: Klarna’s aggressive expansion is fueled by rounds of gangbuster funding.
Klarna bagged $ 693 million strengthen its presence in the United States in June, in addition to a $ 1 billion increase in March. He used these funds to acquire Three undertaken in July only. All this activity is paying off: Klarna should hold on 48.6% of US BNPL market share by the end of the year, according to our forecasts. And in the first quarter of 2021, Klarna reported global volume of goods (GMV) of $ 18.9 billion, from $ 9.9 billion in the first quarter of 2020. $ 6.9 billion arrived in March 2021, a monthly record for the company.
The challenge: Competition threatens the growth of BNPL providers as traditional payment players try to win back their customers.
Citi will be launch a BNPL product in Australia in October, and Visa plans to launch its own product in the United States in “the weeks and months to come”. from Canada Scotiabank correct debuted a BNPL payment offer that allows credit card holders to convert payments into BNPL plans.
These offerings could hamper Klarna’s growth and make it more difficult for the supplier to maintain its impressive market share. But Klarna is probably banking on her ambitions to become a great app which houses commercial and financial services to retain its user base and fend off competition by tightly linking customers to the business.