Can Klarna shake up the way in which we store?
Klarna's pastel pink aesthetic and playful marketing set it apart from traditional financial brands – but it's not without its critics. As the "shop now, pay later" service is regulated, let's examine how it creatively tries to win over consumers
If you're into online shopping, you've probably noticed that Klarna's distinctive pastel pink logo is popping up on the checkout page of your favorite sites with increasing regularity. The “buy now, pay later” model, which offers interest-free financing without a credit check, has been booming in recent years. Klarna may have been at the forefront of the move away from more traditional forms of credit and now works with over 250,000 retailers worldwide, from adidas to ASOS.
Klarna was founded in Stockholm in 2005 and officially launched in the UK in 2016. Since then, it has won over UK customers in droves with its streamlined approach to digital payments and engaging messaging that gives customers the peace of mind to sit back and relax. Klarna will notify you when payment is due. "
People who use the service typically have 30 days to pay for their purchase or, alternatively, they can slice it and pay in installments over a number of months. Unlike some of its competitors, the company wants to promote that no additional fees or interest are charged. Instead, it generates most of its revenue from fees paid by the online retailers it works with.
The appeal of the “buy now, pay later” proposal has only increased in light of the financial uncertainty caused by the pandemic and the broader boom in online shopping. According to reports, Klarna added 21 million new customers in the first nine months of 2020 and, at some point, gained 200 new retailers to use its payment technology on a daily basis. In September it became the fourth largest private fintech company in the world.