- ORIGINAL NEWS
Klarna scores major payment deal with Uber ahead of hotly anticipated IPO
- SUMMARY
Swedish fintech Klarna and the ride-hailing giant Uber have joined forces in a global partnership.
This collaboration will make Klarna a payment option within Uber and Uber Eats apps in the US, Germany, and Sweden.
Customers will now have the convenience of using Klarna’s “Pay Now” feature for instant one-click payments.
Additionally, Klarna will offer a unique payment option for Uber users in Sweden and Germany, allowing them to bundle purchases into a single, interest-free payment that will be deducted from their monthly salary.
Notably, Klarna will not be offering its popular installment-based “buy now, pay later” plans on Uber’s platforms.
Instead, Klarna CEO Sebastian Siemiatkowski emphasizes the significance of its “Pay Now” option, which already accounts for over a third of Klarna’s global transaction volumes.
This partnership with Uber is a remarkable achievement for Klarna, solidifying its position as a major player in the payment industry.
It also comes at a time when Klarna is rumored to be preparing for an IPO that could value the company at over $20 billion.
Klarna’s financial performance has improved significantly in recent quarters, reporting its first quarterly profit in four years last year.
The company aims to continue its growth through innovative products like its recently launched monthly subscription service, Klarna Plus.
While “buy now, pay later” services like Klarna offer convenience and affordability, they have also raised concerns about the potential for overspending and consumer debt.
Regulatory bodies around the world are considering legislation to safeguard consumers using these services.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Klarna deal marks one of the most significant merchant wins for Klarna as of late and comes as the firm is rumored to be gearing up for a blockbuster IPO.”
“Klarna began having detailed discussions with investment banks to work on an IPO that could happen as early as the third quarter”
Negative
“Klarna saw $38.9 billion erased from its valuation in 2022 when deteriorating macroeconomic conditions stoked by Russia’s invasion of Ukraine caused a reset of sky-high tech valuations.”
“Concerns about the affordability of such services, and whether it is in fact encouraging some consumers — particularly younger people — to spend more than they can afford.”