Sweden’s Klarna launches in Australia and partners with CommBank
Klarna, the global payments and shopping provider, officially launches in Australia by introducing the Klarna Shopping app. The app which, starting today, will be available to download on iOS and Android, enables consumers to shop and pay with Klarna at any online retailer, bringing a unique consumer centric shopping experience to the Australian market.
The Klarna app, which has been downloaded over 12 million times, offers Australian consumers an elevated one-stop shopping experience and allows them to Pay in 4 equal instalments at any online retailer with no interest or fees, when they pay in time. Consumers will also have the ability to browse top brands, create universal and curated wish lists, receive price drop notifications, and have access to shopping inspiration, exclusive deals and discounts from local Australian retailers, all from the comfort of their smartphone.
“Australian consumers’ expectations are evolving, they demand seamless, intuitive and transparent online shopping services that better meet their daily needs. Klarna streamlines this experience from browsing to payment at checkout to post-purchase which allows consumers to take control and shop on their terms all from a single app. This partnership with CBA is rooted in a shared obsession on how good digital experiences can truly serve consumers today. 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,” Klarna CEO Sebastian Siemiatkowski says.
Klarna partnered with The Commonwealth Bank of Australia (CBA), which invested in the global fintech company last year to launch services in Australia and New Zealand. CBA app users will be able to easily connect their CBA account to a Klarna account, enabling smoooth shopping in a few easy steps.
“We are excited to be partnering with Klarna to bring their innovative payments technology and integrated shopping experience to the Australian market. Together with our market leading digital technology, merchant relationships and strong customer network, we will deliver a range of innovative new services to benefit Australian consumers and merchants.” Matt Comyn, CEO of CBA says.
Founded in 2005 in Stockholm, 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. Today more than 85m consumers use Klarna, and the company partners with over 205,000 merchants in North America, the UK and Europe including H&M, Michael Kors, Wayfair, Adidas, IKEA, Expedia Group, Samsung, Microsoft, ASOS, Peloton, Boohoo, Sonos, RayBan, Levi’s, Ticketmaster, Abercrombie & Fitch, and Nike. As part of the company’s recent $460M equity raise, Klarna was confirmed as the largest private fintech in Europe and as one of the largest private fintechs globally.
How Klarna’s in-app shopping works:
- Users will need to be 18 years of age or over
- Once verified and approved, Klarna will determine each customer’s ability to repay at each time of purchase, including by carrying out a credit check
- Thanks to Klarna’s ghost card – a single-use, prepaid card – all purchases and payments can be managed directly in the app, giving consumers flexibility and control over their spending
- When creating a Ghost card in the app, users will be able to enter the dollar amount they plan to spend
- Once ready for checkout, the single-use card details are added in to complete the purchase