Swedish FinTech Klarna is booming in Europe as shoppers turn to Buy Now, Pay Later products amid inflationary pressure and high interest rates.
In brief:
-It said gross merchandise value had grown 26% in the UK and 14% across Europe in the second quarter of the year
-Klarna did not mention if the increase in demand would turn a profit
-It continues to offer interest-free instalments on products bought using credit, despite the fact that central bank interest rates have tripled over the past year.
What does this mean?
Klarna CEO Sebastian Siemiatkowski said: “While other, smaller players dial back their commitment or leave the region altogether, we’re doubling down, further strengthening our position in Europe, as well as the US.”
