The Not So Small Start-up

On one of our visits, Scott and I, along with the rest of our class, visited Klarna. Klarna is a European leader in ecommerce payment processing for online transactions in Europe. While it's history may be short, it's a little more than six years old, it is showing large signs of growth. This can be easily explained given the fact that it now has over 800 employees in 6 countries, it's clout has expanded.

In the US, the company Paypal comes to mind when we think about ecommerce payment processing. Klarna, even gives Paypal credit in being number one in the world in terms of clout and overall size of business. However, Klarna likes to see themselves as the world leader in the quality of their product and ease of use.

Unlike Paypal, Klarna focuses on the ease in which a person can shop by using their systems. Unlike Paypal, you don't need to sign up ahead of time to use the service and you don't have to put any credit card information in. In fact there are only about three things Klarna will ask you if you area new user that's not signed in on Facebook when you are paying for the item you bought. At that time, they either approve you for credit on 14 day terms or not. After which they ship the item to your address, which you never even had to enter in.

Fantastic idea? We think so. What Klarna has been able to do is cut down bounce rates of buyers once they have decided on a purchase and they are at the pay now screen. Even more amazing is their latest product called “Klarna Checkout”. Using this service, a buyer is able to have one click buying.

Amazing, quick, when will we have it, and why don't we have it are thoughts we had. Luckily for us this business is growing and has future plans to expand. This start-up might soon enter into the US. When that happens, we will no longer be able to even remotely say that this company is a start-up. Then again with 15000 e-stores using their service and over a billion in revenue a year, can we really even now say that they are still a start-up? We will leave that one up to you and your opinion. Either way, Paypal is watching and so are we.