Consumer credit offering expands
2019 to date has proven to be a record growth year for Klarna, and this is before the much anticipated shopping holidays. Each day thousands of new consumers are choosing Klarna, with especially strong preference building in the UK and the US markets. The unique online and offline customer-centric offering, providing a healthier, simpler and smarter alternative to credit cards, and with multiple services to smoothen the end to end shopping experience, confirms Klarna as the preferred ‘buy now, pay later’ provider.
Klarna has seen a surge in merchant demand for its services across verticals and is now powering over 190,000 merchants globally. In 2019 to date, Klarna has added over 60,000 new merchants and each day is helping them increase consumer acquisition, average order value, conversion and retention. The number of new merchants increased by 140 per cent globally in 2019, compared to the full year of 2018 with strong growth in newer verticals including travel, home and beauty.
Klarna’s move into physical retail has also been a hit with shoppers, as Klarna launched it’s “House of Klarna” experiential event series. Mancunian shoppers made 7,000 visits to the Manchester based pop-up, as Klarna took it’s range of products, and strong brand identity, to the streets. The value of in-store continues to be a focus for Klarna, and there are now 10,000 stores live with Klarna’s in-store solutions, including H&M, Samsung, Schuh, Halfords, Dish, Peloton, Saatva, OnePlus, iSmash, Thai Airways, Gina Tricot and XXL and global in-store volumes have increased by over 90 per cent since the beginning of the year.
UK merchants who are offering the three interest-free instalments reporting a 55 per cent increase in average order value, with 85 per cent of Klarna users saying the service is better than other online checkouts. Global brands across verticals that are now live with Klarna include H&M, River Island, Boohoo, Made.com, Abercrombie & Fitch, Timberland, Swarovski, S by Serena Williams, ACNE studios, Lulus, Romwe, Michael Kors, Wayfair, Expedia Group, Shein and joining the likes of ASOS, IKEA, Peloton, Ticketmaster, Adidas, Nike, Sephora, Missguided, Beauty Bay, Samsung, Gymshark, Bose and Superdry.
As a way to further support its SME merchant base and help them fulfil their potential, Klarna is also today announcing the launch of its merchant lending product in the UK. The new offer will provide small and medium sized merchants with the opportunity to apply for affordable business financing through a quick, frictionless and transparent process and simplifies what has traditionally been a time consuming and complicated process for business owners. Klarna’s merchant lending product has since last year been available in seven other European markets, helping businesses boost their growth by 15 per cent compared to those who didn't make use of it, and has a repeat usage rate of over 60 per cent, proving that merchants really appreciate a transparent and simple business financing solution.
“Retail is undergoing a radical shift driven by consumers who are expecting more transparency, flexibility as well as intuitive services centred around their needs when shopping. Klarna now has over 190,000 merchant partners globally who are understanding that in order to be competitive and build loyalty, they need to think of the end to end shopping experience for the consumer rather than just a transaction. Klarna’s trajectory is a result of a relentless focus that the future of retail consists of a high touch experience which will not only drive engagement and reach, but also build customer preference.” says Sebastian Siemiatkowski, founder and CEO at Klarna.