Klarna’s Great Buying Binge

Issue 203 | 11 November 2021

In this edition of Payments:Unpacked Extra! we are pleased to feature a FINCUTS analysis on Klarna’s acquisition spree prepared by Tanya Thourani.


Klarna’s Great Buying Binge

With the explosive growth of the BNPL industry, it isn’t difficult to notice Klarna’s acquisition spree.

Should we pay attention?

BNPL accounted for 2.1% (about $97 billion) of all global e-commerce transactions in 2020. The sector is expected to keep growing to be worth $166bn by 2023, according to Worldpay and GlobalData’s thematic research.

It is clear that Buy Now Pay Later (BNPL) products are in high demand by both consumers and merchants amid the digital upheaval in financial services. Some credit to the pandemic, of course, that accelerated the growth of online shopping.

But BNPL does not stop here and what’s next?

Reviewing Klarna’s purchases over the past few years and their 2021 buying binge, the pattern suggests that Klarna is moving beyond its BNPL origins to rapidly become a “one stop" shopping destination. 

How?

By bringing informative shopping experience to Customers :

  • Product discovery, product reviews, price & product comparisons. 

  • Flexible delivery, tracking and returns.

  • Loyalty cards, additional money saving tools.

  • Influencer Marketing, live shopping events and much more…

By accelerating growth for Merchants :

  • Behavioural insights. 

  • Marketing performance.

  • Data Analytics providing merchants with location-based data on purchases and store visits.

Tanya Asks

Will the above combinations place Klarna on a trajectory to challenge retail partners and the likes of Amazon, Google and Facebook?


Tanya Thourani

We are pleased to feature this guest article from Tanya Thourani.

Tanya is a London based Digital Consultant with great love for Fintech & Innovation - here’s Tanya’s journey:

For more about Tanya and #FINCUTS visit: www.fincuts.com.

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