Klarna Eyes Indian Shoppers

Klarna is a Sweden based e-commerce company that provides payment services for online storefronts. Their core service is to assume store claims for payments and handle customer payments, thus estimating the risk for seller and buyer. About 20% of all e-commerce sales in Sweden go through Klarna. The company has stores in seven countries in Europe. There is an office in Israel, which focuses on Research and Development.

European payment provider, which allows consumers to make online purchases using only their e-mail address and postcode with no registration or credit cards, is exploring the possibility of setting up business in India. The Stockholm based company is currently valued at around $1 Billion and active in 16 countries. The company was founded in 2005 by three students at Stockholm school of Economics and has 1,100 employees across the countries, which has its operations.

Klarna integrates the payment methods promising to make online shopping easier. About 35 Million customers have shopped from Klarna and company has 50,000 merchants. The company is focusing on removing friction and hassles from online buying. For using Klarna, there is no need to create an account or a password. Customers can shop using only their email address and postcode. The customers then confirm the purchase before choosing a payment method. Klarna has also introduced Pay after delivery as a Payment option, where the customer has 14 days to pay. This means the customer gets their goods and can make sure they are ok before paying. For this, Klarna gives full guarantee to the customers as well as merchants.

For every purchase, the company also performs a swift background check on customer information based on the speed at which they type their email address and postcode. Klarna claims to be the one of the fastest growing e-commerce companies in Europe and having a 10 percent market share of e-commerce in Northern Europe. Klarna is active in Austria, Belgium, France, Germany, Hungary, Italy, the Netherlands, Poland, Spain, Switzerland, the UK, and the US.