Stripe and Klarna Financial Firms Announced an Alliance: Integrating Premium Payments
It was reported that Stripe , an American mobile payment technology company , and Klarna , a Swedish online payment manufacturer , which is the world's two largest private online financial services companies by market capitalization, are now starting to join hands.
Stripe has announced that it has reached a strategic partnership with Klarna, and will provide its merchant customers with Klarna's installment payment services.
Klarna's chief technology officer, Koen Koppen ( Koen Koppen ) said that by collaborating with Stripe , for existing Klarna retailers of all sizes, the two companies will be combined into a growth engine. Companies and businesses can use the integrated services of both parties to achieve success in their business.
Stripe's main business is not consumer-facing, primarily to help business merchants provide online payment services or offline collection services. The company said that through this alliance with Klarna, existing Stripe merchant customers can use Klarna as an online payment option in the future.
Sweden's Klarna primarily cooperates with merchants to allow them to implant their own payment buttons. Through this alliance with Stripe , the company's services will gain more business customers.
In addition to integrating the business on a global scale, Stripe and Klarna also announced Tuesday that they will deepen their collaboration in the North American market . According to the announced information, Stripe accounts for 90% of Klarna's payment order processing in the United States and Canada.
According to data from the financial market research firm in its latest financing deal, Stripe has been capitalized at $95 billion, making it the most valuable private online financial startup in the world. In comparison, Klarna's market capitalization ranks second in the industry, at $46 billion. Both companies (both private unicorns with a market capitalization of over $1 billion) are expected to go public soon.
The cooperation with Klarna Stripe this time is basically a giant that payment does not want to miss the new trend to pay premiums in the industry. Currently, Stripe's US payment industry competitors, such as Square and PayPal , are aggressively expanding into the premium payments space, and Stripe does not want to act as a spectator.
Before that, Square recently reached an agreement to spend $29 billion to acquire Afterpay , an Australian premium service provider. In addition, PayPal already has its own installment payment business, and is preparing to spend $2.7 billion to acquire Japanese installment payment company Paydy .
Klarna was born in 2005. The company's consumer premium payment service has met market demand and rapidly grown its business, making the company one of the strongest brands in the European Internet finance industry . In the installment business model, consumers can amortize their shopping costs over a longer period of time, and paying in installments does not increase the interest burden.
What is Klarna's profit model ? It is reported that the company and the retailers have reached an agreement that they will receive a share of every shopping transaction made by the company. On Tuesday, Stripe also said that after customers offered merchants the option to pay in installments from Klarna, their sales increased by an average of 27%, and the amount of money per transaction request increased by 41%.
However, installment payment services are also facing some criticism from the outside world. Critics believe that premiums make consumers (especially young people) not think about whether they can afford it when shopping. In the UK, government agencies have drawn up plans to oversee the premium payment industry to avoid harming consumers.
Last week, the British Treasury began soliciting opinions and suggestions from the outside world on regulating premium payments.
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