Ant Financial, owner and operator of the Chinese payment platform Alipay, has taken a minority stake in Swedish payments and shopping platform Klarna, as the two companies deepen their partnership to bring more innovative and convenient financial services to consumers worldwide.
This investment in Klarna by Ant Financial, the payment affiliate of Alibaba Group, supports the further development of their strategic cooperation, bringing more of Klarna’s innovative solutions to consumers and merchants within the broader Alibaba ecosystem, the companies said.
It will deepen ongoing collaborations between Klarna and Alipay, which currently enables shoppers at AliExpress, the global retail online marketplace of Alibaba Group, to use Klarna’s popular buy now, pay later solution across multiple markets.
“At the heart of this cooperation between Klarna and Alipay is a shared ambition of innovating truly superior shopping experiences and creating destinations of inspiration for consumers across the world,” said Sebastian Siemiątkowski, CEO at Klarna.
“Alipay, and the wider Alibaba Group, have truly set the global pace on retail innovation and the app economy. We are delighted in this confidence shown in Klarna in defining the future of payments and shopping and are very much looking forward to working together further in the future.”
Australia’s CommBank has also invested $300 million in Klarna to hold a 5.5 per cent stake in the business which launched in Australia last month.
Klarna is now powering over 200,000 retailers and ecommerce platforms globally including AliExpress, H&M, ASOS, Expedia Group, IKEA, Farfetch, Adidas, Spotify, Samsung and Nike. In 2019, Klarna added over 75,000 new merchants and as a strategic growth partner and is driving millions of referrals and traffic each month from owned channels to these retailers, as consumers are actively seeking where they can shop with Klarna.
Equally, Klarna now has an 85 million strong consumer base who choose to shop with Klarna as loyalty and preference grows across touchpoints – online and instore. The recently launched shopping experience in the Klarna app allows US consumers to shop with Klarna anywhere online. The number of app downloads has increased by 33x since May, and new features gain instant traction – over two million items were added to consumer wish lists in the first months.
Klarna now has more than 200,000 more monthly app downloads than the nearest US competitor. During 2020, the company will continue to gain strong momentum on current markets as well as enter new markets, with an already strong start to the year with the recent successful launch of the Klarna app in Australia.