Klarna, the leading global payments provider and shopping service, that already serves over 200k merchants worldwide, officially launches in Spain today by introducing ‘Pay in 3’. Shoppers who use Klarna in a retailer’s checkout will be able to buy online and split their purchase into three equal payments with no added interest. Klarna will go live with Michael Kors at the end of July with many more well-known brands to follow shortly.
With the launch of `Pay in 3′ (“Paga en tres plazos”), Spanish shoppers will be able to securely purchase their goods from their favourite online stores and spread the cost of their purchase over three instalments, charged every 30 days. The payment solution comes at no interest or fee when users pay on time. Along with the new offer, Klarna will also introduce the Klarna app shortly which allows users to keep track of their payments, pay off existing payments, as well as find inspiration.
“Retail is changing at a rapid pace due to rising expectations from Spanish consumers. More than ever, consumers demand transparent and efficient shopping services that match their daily needs. We believe the future of retail is high tech powering high touch experiences, so regardless of how and when consumers want to shop and pay, we need to be there for them. That’s why we focus on unique shopping solutions that allow consumers to take control and shop on their own terms. We are very excited to launch in Spain today and elevate the shopping experience for all Spaniards,” says Sebastian Siemiatkowski, CEO and co-founder of Klarna.
Announcing Klarna’s launch in Spain today, the company states that it’s focused on being a growth partner for merchants in Spain. Across markets, Klarna’s global expertise has proven to help merchants increase customer conversion rates and sales, by focusing on simplifying the checkout experience for consumers.
“A common problem merchants are facing is to offer a seamless online shopping process. Consumers find something they’d like to purchase online but end up abandoning it due to long or complex checkout processes, extra fees or the lack of willingness to pay online for something that may not end up being delivered or not look as expected. This is why we’re so excited to bring our shopping solutions to Spain and open an office in Madrid. We’re absolutely focused on helping merchants make the most of the growth in e-commerce and build loyal and satisfied customers in the long term,” says Daniel Espejo, Country Manager Spain at Klarna.
Klarna is launching in Spain at a time when the Spanish society becomes more and more digital. According to Statista, revenue from eCommerce in Spain is expected to grow on an annual growth rate (CAGR 2020-2024) of 7.6%, resulting in a projected market volume of €22.9 billion by 2024. This is also shown in other figures: 7 in 10 Spaniards between 18-65 years old bought online in 2019, which represents almost 20.3 million people. What is interesting as well, although the computer is still king, is the fact that the use of mobile for eCommerce grows steadily year over year and it is already being used by 53% of online shoppers (VI Annual Study of eCommerce in Spain, IAB Spain and Elogia, 2019). Klarna aims to become an essential partner for retailers in Spain in the recovery path by helping them increase sales with its payment solutions and flexibility for customers.
Founded in Stockholm in 2005, the company currently holds a post money valuation of $5.5 billion, which ranks Klarna as the largest private fintech in Europe and one of the largest private fintechs globally. Today more than 85m consumers use and trust Klarna, and the company partners every 7th minutes with new merchants such as Inditex, H&M, Sephora, Michael Kors, Mango, Wayfair, IKEA, Expedia Group, Samsung, AliExpress, ASOS, Boohoo, RayBan, Levi’s, Ticketmaster, Abercrombie & Fitch, and Nike.
Across the world, Klarna offers a wide range of products within payments, shopping and personal finances to make it easier for people to shop on and offline, including buy now pay later services, in-store payment solutions and a new direct-to-consumer shopping app.