Swedish fintech Klarna’s growth outpaces e-commerce

This outpaced the overall e-commerce market, which grew by just 1% in the same period.

Klarna has expanded into 11 new European markets since 2020, most recently Romania and the Czech Republic. The company has over 100 million European consumers and partners with over 470,000 merchants.

Klarna’s instant debit option, Pay Now, has been rolled out across all European markets and accounts for around a third of all transactions. This means consumers now have the choice to pay in full immediately or pay overtime, all without interest, when selecting Klarna at a retailer’s checkout.

Retailers benefit from offering consumers a seamless checkout experience and giving their customers more choices according to their needs. Klarna is a driving force behind the shift from search-based to recommendation-based shopping.

The company’s growth is driven by several factors, including its strong brand awareness, innovative payment solutions, and focus on providing a seamless customer experience. Klarna is well-positioned to continue its growth in the European market, which is expected to grow at a compound annual growth rate (CAGR) of 10% between 2022 and 2027.

The news of Klarna’s robust growth comes when the BNPL sector faces increasing scrutiny from regulators. In the UK, the Financial Conduct Authority (FCA) has warned that BNPL products can be “harmful” if not used responsibly. However, Klarna has said that it is committed to responsible lending and has several safeguards in place to protect consumers.

Only time will tell whether Klarna’s growth can continue in the face of regulatory scrutiny. However, the company’s European solid performance suggests it is well-positioned to weather any storm.