How Sweden-based Klarna (The Payment App) Has Secured $20M in Corporate Round of Funding from H&M With These 3 Strategies


This post includes information for the payment startups & entrepreneurs. Read on three winning strategies from Klarna, the payment app, which you can consider during best mobile payment app development.

The opinions regarding payment apps have changed dramatically. This is because that there is a number of mobile payment apps, which claim to send money among people seamlessly. So, if you are fond of finances and having interest in this niche, then you might be aware of the popular Swedish Fintech startup, Klarna, which provides online financial services, including payment solutions for online storefronts, credit payments, and debt collections.

As per the report from CB Insights, these are the payment startups, which are responsible for disrupting the payments sector.


Meanwhile, we came across the news about Klarna, the Swedish Fintech. As per the latest report from TechCrunch, “The Unicorn Swedish payment app, Klarna, has raised $20 million in Corporate round of funding from H&M (a Swedish multinational fashion retailer with 4800 stores in 70 markets across the world).” Well, the duos will build financing and payment services for the fashion retailers.


Image Source: Klarna

Klarna: The Payment App

At the very core, Klarna is a Swedish bank, and their core services are to assume stores’ claims for payments and handle customer payments.

Talking about the Klarna app, it provides an instant credit for online purchases to consumers or app users and eases the friction in complementing the online transactions.

Let’s know more about some important stats about Klarna, the payment app.

  • In 2017, Klarna was valued at $2.5 billion, and it has made a series of investment announcements, and they included $225 million stakes Klarna’s first fashion investor, Anders Holch Povlsen, Visa (credit card giant) and Permira.
  • The fintech startup, Klarna, was founded in Feb 2005 and provides an e-commerce payment solution for merchants and shoppers.
  • Klarna is one of Europe’s largest banks. And, this unicorn, Klarna, the payment app provides more flexible payment options to give the possibilities, including “try before you buy” to pay later or through installments on local market availability to their app users or customers.

Apps-for-paymentsImage Source: Klarna

  • Klarna provides an e-commerce payment solution with the aim of making easier for its app users to shop online.
  • Klarna is a part of Klarna group, and here are the few statistics of Klarna:  Number of transactions per day: 800,000, Total number of end-customers: 60,000,000 and Total number of merchants: 90,000
  • It offers direct payments, pay after delivery options and installment plans in a smooth one-click purchase experience and it allows its app users to pay when and how they prefer to.
  • The company acquired SOFORT in 2014, it is backed by investors, including Sequoia Capital, Permira, Visa, Bestseller, and Atomico.
  • According to SimilarWeb, Klarna app is ranked #17 in the finance category. Moreover, according to the report from SimilarWeb, the usage rank graph is all growing in the finance category. This is what you can see in the image.


  • According to another report from App Annie, currently, the download rank of Klarna payment app is #2 in the finance category in Apple App Store. This is what you can see in the image below.

3 Strategies by Klarna App, Which Startups Can Consider Before Developing Successful Payment Apps

1. Introducing a Virtual Credit Card (An Alternative to Credit Card)

Apps for payment like Klarna allow shoppers or app users to pay without even having a credit card. The payment app like Klarna extends services in terms of credits to their customers and they would pay later as people do in credit cards. Being a startup, you can provide your app users an alternative credit card or a virtual credit card. Alike Klarna app, you can also give complete control of the shopping experience.

Payment-App-SolutionsImage Source: Klarna

Talking about one of the winning strategies of payment app, Klarna, gives an alternative to credit cards to shoppers. So, all you just need to work on such an effective strategy, which you can also consider while developing the mobile payment app like Klarna.

When it comes to risking, Klarna app is totally different from it. It works like the credit card, but it comes with zero risks. Consumers just need to pay within 2 weeks or 30 days. It provides a safe and secure platform more than the credit cards. In short, the payment app like Klarna has cut the need for credit cards.

However, Klarna app also lets its app users pay as they like to pay, including the full amount, schedule it later and pay in installments.

2. Zero Charge

One of the best strategies included by Klarna, the payment app, is that it provides its services free of charge. To elaborate it more, let us take an example of its competitor, named Stripe. Companies like Stripe makes money by just a fraction from interchange fees, plus it charges per merchant to make money.

Klarna app does not charge any fees from users or consumers, however, offers solutions to the merchants, which drive conversion rates. And, three years ago, Klarna app had over 10 million consumers.

Above all, if you are ready to dive into the competitive landscape with your mobile payment app like Klarna, then it is highly recommended to consider such effective solution during online payment app development.


Image Source: klarna

3. Customized Payment Solutions

After taking people out from the credit card relationships, the payment app like Klarna has already set the standards in the online payment industry. And, it takes the online payments to the next level. It provides the customized payment solutions to its app users, as in the app users can pay as what they would like to pay without paying extra charges on shopping.


Image Source: klarna

The payment app, Klarna offers its app users three types of products for customized payment solutions, including checkouts, pay in installments, and pay later.

  • Easy Checkout Process: The Klarna checkout process allows users to make a purchase with a single click with preferred shipping and payment methods.
  • The Easiest Way of Installments: Easy and quick consumer finance, no re-directs, real-time credit assessment.
  • Allows to Pay Later with No Extra Fee: No interests & fees, and it allows to pay up to 30 days.

In short, the online payment app like Klarna offers payment solutions for both shoppers and merchants. So, the important takeaway is that you can consider such winning strategy from the payment app, Klarna, and it is worth-including during mobile payment apps development.

Ready to Build a Complete Payment Solution like Klarna App?

The whole idea behind the online payment app like Klarna app is allowing shoppers/app users with total control and flexibility to pay when and how they want to pay. It allows paying in a way, which suits users’ personal circumstances and needs. Plus, it provides solutions to businesses as well.

After going through this, being a startup or an entrepreneur, if you might have some queries in your mind like:

  • How much does it cost to create the payment app like Klarna?
  • Should I go with an MVP (Minimum Viable Product) while developing mobile app?
  • I have an app idea on the online payment app, what’s the right way to proceed?
  • Indian app developers cost
  • How long does it take to create an app?

Then, you can discuss your queries with us as we’re a leading Android/ iOS app development company and have already developed over 3500 mobile applications with diverse features and functionalities.

In case, if you still have any query or confusion regarding mobile payment app development or payment app solutions, then you can get in touch with us through our contact us form. One of our sales representatives will revert to you as soon as possible. The consulation is absolutely free of cost.

You may also like:

This page was last edited on May 8th, 2020, at 7:31.


Have an App Idea?

Get your free consultation now

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Your Free Quote