Klarna Bank AB, popularly known as Klarna, is a Sweden-based financial firm that offers buy now and pay later fintech. According to recent news, it has joined hands with Raisin, a Germany-based online deposit marketplace with an aim to offer higher interest rates to customers in the German retail sector.
Klarna, the USD 5.5 billion start-up, which witnessed its first annual loss in the year 2019, is all set to offer its online products strictly through WeltSparen, a Raisin marketplace.
As of Wednesday, June 10, 2020, German customers on Raisin were able to access Klarna’s deposit products.
Additionally, one of Klarna’s initial offering that is an overnight money account is designed where the borrower is expected to pay back funds, including the interest, by the next business day.
Note: The account works at an interest rate of 0.35%.
Robert Bueninck, Klarna’s DACH Managing Director, says, “We’re on an exciting journey from being purely a payment provider to a comprehensive shopping ecosystem.” He adds, “Through our cooperation, we’re enabling our customers to easily build up long-term assets.”
More about Klarna
Klarna, the Swedish financial platform focused on offering payment solutions for online stores, post-purchase payments and direct payments, extensively works with 205,000 plus retailers, and a few names include H&M, Spotify, and Nike.
With a strong clientele, the firm has a workforce of 2,700 employees spread across 17 countries.
Last year, Klarna, which is Europe’s largest joint fintech by valuation along with a USD 5.5 billion UK challenger bank called Revolut, journeyed from the Baltic Sea to the US.
Klarna, during this phase, came across cut-throat competition as it fought against services offered by giant players such as JP Morgan Chase, Visa, Mastercard, American Express, and PayPal.
However, the expansion seemed to have taken a toll on the fintech business as the company reported a net loss of USD 92.8 million. Alongside this, it is also observed that the profits have slowed down.
Klarna’s partnership with Raisin is expected to open yet another avenue for revenue generation that is likely to help boost profits for the firm.