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How does klarna work and how does klarna make money

Day by day high numbers of consumers moving towards online shopping platform, Here in this article you will know about such one e-commerce platform Klarna and all details about How does klarna work and how does klarna make money? Klarna has a big numbers of satisfied consumers as well as this is the most reliable and many years of e-commerce journey successfully completing company.

What is Klarna Business Model And How Does Klarna Earn Money

how does klarna work

Klarna provides online shopping service mostly in almost all over the world, Here You will get to know all aspects about Klarna like as there business procedure and revenue generation.

Klarna Business And Money Earning Strategy

How does klarna works

You should know first about actual work strategy of Klarna as well as how it had been established. Usually Klarna was a e-commerce company same like as other e-commerce company which had been established in the year of 2005 at stockholm in sweden since up till now they have been created a big chain of around 2 millions of merchants , also they are providing online shopping service around 17 countries with around 90 millions of satisfied consumers.

Now Klarna has been turn into a bank which is providing easy payment solutions to merchants and globally they are trying to reach to the customer on the basis of there policy ‘Buy now pay later’ .

If you want to know more about klarna business model then you must know like as Klarna has focused on not only to increase retailers or merchants sell but also they are trying to provides best service to consumer by giving facility buy now pay later.

Actually Klarna gives money to merchants or retailers when any consumer buying product through klarna as a online shopping platform, That means on your every online shopping order merchant receiving money from klarna. Here klarna doing only soft credit check process like age credit history ,age , salary etc. , Nothing else more than that.

How Does Klarna Makes Money

Now important thing here is to get understand about finance source of klarna , Klarna never applying payment solutions charges or interest they are applying transaction fee to retailers on every transaction for all payment options, There transaction charges like as 0.30 pound it is variable up to 3.29% to 5.99% . And other side consumer getting relax payout method from klarna like as via installment , or 30 days payout option or 30-60 days relax payout method.

All of this methods are interest free payout method, Except in case if consumers have made purchasing through ‘Buy now pay later ‘ policy and they have not paid their last installment at the last billing month or not cleared balance then klarna apply 18.9% APR interest fee , That also the one income source for Klarna.

Here Klarna is big risk taker because this company is paying behalf to the consumer in advance to retailers or merchant, This thing surely increase retailers selling as well as consumers are going able to purchase whatever they want on proper time , That is why klarna is well known and famous company for there ‘Buy now pay later’ policy.

So here In this way Klarna works not only for consumer but also for merchants or retailers too. Also they are earning money through charge merchants being as a intermediary between them, Hope you have understood this information very well.


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