Klarna, the most valuable fintech, buy now pay later provider, in Europe will enter Australia in 2020.

Sebastian Siemiatkowski, CEO of Klarna, said, "We are on a very exciting journey from a Scandinavian payment provider to a global shopping ecosystem." 

Klarna currently operates in more than 14 countries and when it becomes available in Australia, it will join local rivals Afterpay, Zip and Humm. Each buy now pay later payment service provider has different offerings, but are all centered around installment plans. For example, Klarna gives shoppers three different installment options, Afterpay on the other hand allows its users to split the cost of purchases into four equal installments while Zip offers two products with two different credit limits.

Siemiatkowski said, "We are winning a new merchant every eight minutes. Since the beginning of 2019 we have enlarged our merchant base by over 60,000 merchants to over 190,000 today."

The launch of Klarna this 2020 will coincide with an investigation by the Reserve Bank of Australia (RBA) into the "no-surcharge" rule. RBA will determine whether they can allow retailers to pass the cost of offering buy now pay later services to their customers which can be between 2-6% as part of its 2020 review of card payments regulation.

Source: Finder AU 


Least-Cost Routing Explained

Download the PDF and receive a free annual membership offer

Find Out More

Giving Layaway A Digital Reboot Posted on: 31-12-2019

Giving Layaway A Digital Reboot

After the era of the Great Depression in the 1930s, retailers nationwide offered an innovation to help consumers shop without having to pony up cash right away. It was called layaway.

Read More

Westpac joins rivals in rolling out Apple Pay Posted on: 30-12-2019

Westpac joins rivals in rolling out Apple Pay

Westpac after announcing its plan to rollout Apple Pay across its various brands by mid-2020, became the fourth and final big four bank to allow its customers to make tap-and-go payments with their iPhones.

Read More

How Retailers Can Make the Most of the Festive Season Posted on: 28-12-2019

How Retailers Can Make the Most of the Festive Season

Christmas is one of the most wonderful times of the year in Australia, and it starts early this year.

Read More

PAX Technology prepares for AU rollout of Android payment terminals Posted on: 23-12-2019

PAX Technology prepares for AU rollout of Android payment terminals

PAX Technology will launch its Android products into the Australian market next year, after the completion of its domestic compliance and software requirements.

Read More

Aussies really love to tap and pay, and we’ve all but abandoned cheques Posted on: 21-12-2019

Aussies really love to tap and pay, and we’ve all but abandoned cheques

As we embrace new technologies, cheques are likely to become obsolete.

Read More

Harnessing the Power of Payments This Festive Season Posted on: 18-12-2019

Harnessing the Power of Payments This Festive Season

For retailers, it is a big challenge to survive the festive season from 11.11 to Boxing day sales and beyond unscathed.

Read More