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
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