Here's what you need to know about Klarna IPO: Via ForbesAdvisor
Klarna makes money by offering its payment options right there next to the debit card orWhen a consumer purchases a new mattress online with Klarna, for example, they can opt to split the price into four biweekly interest-free payments, pay in 30 days, or choose a monthly payment plan with a term up to 36 months, carrying anWhat’s great about Klarna’s business model is that the company might actually get paid twice: Once by the retailer, which pays merchant and interchange fees; and potentially...
Klarna is also expanding its “pay now” program to more markets, and also offering rewards for customers who make timely payments. “Our extensive research and interviews with customers finds that with those suffering persistent debt, most often there is sadly a broader addictive behavior that sits at the center of those consumers’ situation,” wrote Klarna co-founder and CEO Sebastian Siemiatkowski in his company’sAnd there’s little doubt that part of the Stockholm-based company’s success has come from the growth of online shopping during the Covid-19 pandemic.
But before you even start worrying about regulation, Klarna is facing fierce competition from a host of competitors—and not just other buy now pay later players, such as Affirm Holdings Inc. .