Klarna to Embrace Cryptocurrencies on its Platform
Klarna Bank AB, a Swedish fintech company, has announced its plans to embrace cryptocurrencies on its platform. The company’s chief executive officer, Sebastian Siemiatkowski, made the announcement on social media over the weekend.
About Klarna
Klarna is a popular “buy now, pay later” app primarily used in Europe. The platform, which is valued at $14.8 billion according to Investopedia, has over 85 million users and 100 billion of volume, Siemiatkowski said. The company has been around since 2005 and received backing by Sequoia Capital, a prominent venture capitalist behind many fintech and crypto-focused companies, in 2010.
Klarna’s Plan to Embrace Cryptocurrencies
Siemiatkowski announced that Klarna will be embracing cryptocurrencies, stating “I give up. Klarna and me will embrace crypto! More to come.” He also shared that he was introduced to three entrepreneurs by an investment analyst at Sequoia, which convinced him to get into crypto. Sequoia, which holds a 22% stake of Klarna, also backs Avalanche, Fireblocks, Stripe, and crypto exchange EDX Markets, among others.
A Competitive Move
Many other fintech firms have long incorporated crypto into their platforms, such as Robinhood, Venmo, or Revolut. The latter two, for example, have long allowed users to buy, sell, and hold certain cryptocurrencies on the app. Siemiatkowski noted that Klarna will be the last large fintech company to embrace crypto, saying “It still feels historic. Last large fintech in the world to embrace it. Someone had to be last.”
What’s Next for Klarna?
Siemiatkowski did not specify how exactly Klarna would incorporate cryptocurrencies into its business model. One user suggested a “buy crypto, pay later” option, which Siemiatkowski responded to saying “probably not.” He also stated that the company will look at all the options and might take some time to have a plan in place.
Conclusion
Klarna’s decision to embrace cryptocurrencies is a significant move in the fintech space. With over 85 million users and 100 billion of volume, Klarna has the potential to make a significant impact on the cryptocurrency market. While the details of Klarna’s plan are still unclear, it is likely that the company will explore various options for incorporating cryptocurrencies into its platform.
FAQs
Q: Why is Klarna embracing cryptocurrencies?
A: Klarna is embracing cryptocurrencies as part of its strategy to expand its offerings and stay competitive in the fintech space.
Q: What is the timeline for Klarna’s crypto plans?
A: The company has not specified a timeline for its crypto plans, stating that it will take some time to develop a plan.
Q: Will Klarna allow users to buy, sell, and hold cryptocurrencies?
A: It is unclear what specific features Klarna will offer, but it is likely that the company will explore options for users to buy, sell, and hold cryptocurrencies.
Q: How will Klarna’s crypto plans affect its existing users?
A: Klarna has not specified how its crypto plans will affect its existing users, but it is likely that the company will communicate with its users and provide updates on its plans.
