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Rafael Henrique | SOPA Images | LightRocket via Getty ImagesKlarna on Wednesday announced a global partnership with Uber to power payments for the ride-hailing giant's Uber and Uber Eats apps. The partnership will see the Swedish financial technology firm added as a payment option in the U.S., Germany, and Sweden, Klarna said in a statement. In the U.S., Germany, and Sweden, Klarna will roll out its "Pay Now" option, which lets customers pay off an order instantly in one click, in the Uber and Uber Eats apps. The company will also offer an additional payment option for Uber users in Sweden and Germany which allows users to bundle purchases into a single, interest-free payment that gets taken out of their monthly salary. The firm recently launched a monthly subscription plan in the U.S. to lock in "power users" ahead of its anticipated IPO.
Persons: Rafael Henrique, Uber, giant's Uber, Klarna, Sebastian Siemiatkowski, Siemiatkowski, SoftBank Organizations: Getty, Wednesday, Klarna, Bloomberg News, CNBC, Nike, Instacart Locations: Swedish, U.S, Germany, Sweden, Ukraine
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Klarna CEO Sebastian SiemiatkowskiSebastian Siemiatkowski, Klarna co-founder and CEO, joins CNBC's 'The Exchange' to discuss Klarna's new credit card, consumer spending, and more.
Persons: Sebastian Siemiatkowski Sebastian Siemiatkowski, Klarna
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKlarna's new credit card is a 'healthier alternative' to others, says CEO Sebastian SiemiatkowskiSebastian Siemiatkowski, co-founder and CEO of Klarna, joins CNBC's 'The Exchange' to discuss the launch of Klarna's new credit card, the potential for an IPO, and more.
Persons: Sebastian Siemiatkowski Sebastian Siemiatkowski
The U.S. government is considering laws to help society adapt to the introduction of artificial intelligence. Economists have worried for years that artificial intelligence could sink job prospects for white-collar workers, similar to the effects globalization has had on blue-collar workers in the past. In 2023, lawmakers in the New York State Assembly put forward a measure to limit the expected impact of tech-driven layoffs with robot taxes. Many economists have said that robot taxes, if used at all, should be set at a relatively low level. Watch the video above to learn more about the U.S. government's plan to regulate artificial intelligence.
Persons: Sebastian Siemiatkowski, Sora, Sam Altman, Erik Brynjolfsson, Brynjolfsson Organizations: CNBC, Force, European Union, Stanford Institute for, International Monetary Fund, New York State, Massachusetts Institute of Technology Locations: U.S, Brussels, United States
Klarna says its AI assistant is doing the equivalent work of 700 people. Not everyone's impressed, but the assistant is another sign of the company's enthusiasm for AI. AdvertisementKlarna says its AI assistant is doing "the equivalent work of 700 full-time agents." One user, Gergely Orosz, a software engineer and author of The Pragmatic Engineer newsletter, said he was skeptical of the news after trying out Klarna's AI assistant. Advertisement"There will be a shrinking of the company," Siemiatkowski said in December.
Persons: Klarna, Swedish fintech, everyone's, , Gergely, Sebastian Siemiatkowski, Siemiatkowski, We're Organizations: Service, Business, Telegraph Locations: Swedish
Klarna CEO on potential IPO in 2024: 'It's not impossible'
  + stars: | 2024-02-27 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKlarna CEO on potential IPO in 2024: 'It's not impossible'Sebastian Siemiatkowski, Klarna CEO, joins 'Closing Bell Overtime' to talk an IPO timeline, the state of the consumer, it's AI partnership with OpenAI and more.
Persons: Sebastian Siemiatkowski Organizations: OpenAI
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKlarna CEO on subscription service: It further accelerates the growth of the businessSebastian Siemiatkowski, Klarna CEO, joins 'Closing Bell: Overtime' to discuss the company's subscription service, consumer spending and buy now, pay later outlook.
Persons: Sebastian Siemiatkowski
Klarna CEO Sebastian Siemiatkowski says the company is in a partial hiring freeze. He told The Telegraph AI was "a threat to a lot of jobs" across the economy. As more AI productivity tools hit the market, some workers are concerned that widespread adoption of the tech could put their jobs at risk. AdvertisementSome CEOs have already bet that AI tools will boost worker productivity and lead to reduced headcount. Other companies including AT&T have even created their own AI tools to help employees with their work.
Persons: Sebastian Siemiatkowski, Siemiatkowski, , We're, Klarna Organizations: Telegraph, Service, T's Locations: Swedish
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCredit products like 'buy now, pay later' may trend long term, says Klarna CEOKlarna CEO Sebastian Siemiatkowski joins 'The Exchange' to discuss Black Friday shopping trends, the momentum of buy now, pay later, and more.
Persons: Sebastian Siemiatkowski
Shoppers turned out in full force on Thanksgiving and over the Black Friday weekend, largely shunning physical stores for the comfort of clicking "buy online" from their couches. Black Friday online spending reached a record $9.8 billion in the U.S., up 7.5% from a year earlier, according to Adobe Analytics. Online sales on Cyber Weekend, the days between Black Friday and Cyber Monday, surged 7.7% to $10.3 billion. Cyber Monday sales are expected to reach up to $12.4 billion, making it the biggest U.S. online shopping day of the year, according to Adobe. A plastic rice washing bowl, listed as one of the top-selling Cyber Week items, is discounted 68% to $1.89 with free shipping.
Persons: Shoppers, Wayfair, Afterpay, Klarna, Sebastian Siemiatkowski, Siemiatkowski Organizations: Adobe Analytics, Black, Adobe, National Retail Federation, CNBC PRO Locations: U.S
Klarna is 'pretty much ready' for an IPO, CEO says
  + stars: | 2023-11-12 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKlarna is 'pretty much ready' for an IPO, CEO saysSebastian Siemiatkowski, CEO of buy now, pay later firm Klarna, discusses the company's latest quarterly results.
Persons: Sebastian Siemiatkowski, Klarna
Profitable Klarna poses IPO valuation conundrum
  + stars: | 2023-11-09 | by ( Karen Kwok | ) www.reuters.com   time to read: +4 min
Last year, Siemiatkowski raised money at a $6.7 billion equity value, or 85% below its 2021 price tag of $45.6 billion. The implied Klarna valuation, before netting out the company’s cash or debt, would be roughly $14 billion. It’s hard to see Klarna getting close to those multiples, if it’s valued like a bank, since the Swedish company is nowhere near as profitable. For Siemiatkowski, then, the key to gaining an IPO valuation uplift will be to convince investors that Klarna is a lender but not a bank. Klarna raised $800 million at a $6.7 billion valuation in July 2022.
Persons: Sebastian Siemiatkowski, Klarna, That’s, Breakingviews, Siemiatkowski, Liam Proud, Streisand Neto Organizations: Reuters, Bank, Reuters Graphics Reuters, Revenue, Thomson Locations: U.S, Swedish, United Kingdom
Buy now, pay later firm Klarna has established a holding company in the U.K. that will sit at the top of its corporate structure, in a symbolic move that paves the path for an eventual listing. A Klarna spokesperson confirmed to CNBC that the Stockholm-based business, which lets shoppers defer payments over a period of instalments, has begun a legal entity restructuring to set up the holding company. "Klarna Holding will continue to be the regulated financial holding company under the direct supervision of the SFSA and we will continue to hold a Swedish banking license." It differs from these competitors in its flexible payment plans, known as buy now, pay later. WATCH: Klarna's buy now pay later losses are 30% below industry standard, says CEO Sebastian Siemiatkowski
Persons: Klarna, hasn't, Sebastian Siemiatkowski Organizations: CNBC, Heartland, PayPal, Sequoia Locations: Stockholm, Sequoia, Swedish, Silver, Britain, Sweden
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKlarna's buy now pay later losses are 30% below industry standard, says CEO Sebastian SiemiatkowskiSebastian Siemiatkowski, co-founder and CEO of Klarna , joins 'The Exchange' to discuss the type of consumer buy now pay later plans attract, the debt collection process for missed BNPL payments, and how investors can differentiate between buy now pay later providers.
Persons: Sebastian Siemiatkowski Sebastian Siemiatkowski
The January-June operating loss at the privately held (BNPL) fintech, which last made a full-year profit in 2018, was 2.01 billion crowns ($185 million) against a year-earlier loss of 6.17 billion. "We feel very confident that we'll be posting a profitable quarter very soon and then eventually also a full profitable year." Klarna Bank is a unit of Klarna Holdings, which has attracted investment from the likes of Sequoia, Permira and Silver Lake. Siemiatkowski said Klarna, whose biggest market by revenue is the U.S., now has more than 30 million users. In the second quarter, gross merchandise volume (GMV) - the value of goods purchased through Klarna - was up 14%, and revenue growth was 17%.
Persons: Sebastian Siemiatkowski, Siemiatkowski, Klarna, Supantha Mukherjee, Anna Ringstrom, Terje Solsvik, Sharon Singleton Organizations: Klarna Bank, Reuters, Klarna, Klarna Holdings, Sequoia, Thomson Locations: STOCKHOLM, Ukraine, Silver, U.S, Klarna
Swedish buy now, pay later firm Klarna reduced its losses by roughly 67% in the first half of 2023, as the company dramatically cut costs in a bid toward profitability. The company reported overall net operating income of 9.2 billion Swedish krona ($843.5 million), up 21% year-over-year. Failing to record a half-year profit, the firm posted a net loss of 2.1 billion Swedish krona for the period, down 67% from 6.4 billion krona between January to June 2022. Credit losses, a measure of how much the company sets aside for customer defaults, sank by 39% to 1.8 billion krona from 2.9 billion. Buy now, pay later, or BNPL, firms allow shoppers to defer payments to a later date or purchase things over installments on interest-free credit.
Persons: Klarna, Sebastian Siemiatkowski, Siemiatkowski, , OpenAI's, David Sandstrom Organizations: CNBC, PayPal Locations: Helsinki, Finland
Klarna, the Swedish buy now, pay later fintech company, halved its net loss in the first quarter, recording a significant improvement in its bottom line after a major cost-cutting drive. The company posted a net loss of 1.3 billion Swedish krona ($120.7 million), down 50% from the 2.6 billion krona loss in the same period a year ago. Klarna reported total net operating income of 5 billion Swedish krona, up 22% year-over-year. The results show how Klarna is making "significant strides" toward profitability on a monthly basis, the firm said. Buy now, pay later firms, which allow shoppers to defer payments to a later date or pay over installments, have been particularly impacted by souring investor sentiment on technology, amid a worsening macroeconomic environment.
According to David Sandstrom, Klarna's chief marketing officer, the firm took inspiration from Chinese tech platforms, which he said have mastered the art of algorithm driven-shopping. The Klarna app has been redesigned to tailor product recommendations to users based on their shopping habits using artificial intelligence. Klarna and other buy now, pay later products proved popular during the onset of the Covid-19 pandemic. Meanwhile, buy now, pay later has come under scrutiny from regulators because of fears that it is pushing some consumers, particularly younger people, into arrears. In the U.K., the government has proposed new rules aimed at adding some friction to the process of applying for a buy now, pay later loan.
Klarna CEO sets out plan to profitability after posting loss
  + stars: | 2023-02-28 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKlarna CEO sets out plan to profitability after posting lossSebastian Siemiatkowski, Klarna CEO, joins 'Closing Bell: Overtime' to discuss the company's new plan for profitability after posting its largest loss ever.
Payments firm Klarna posts smaller Q4 loss, eyes return to profit
  + stars: | 2023-02-28 | by ( ) www.cnbc.com   time to read: +1 min
Swedish payments group Klarna aims to return to profit by the summer, the "buy-now, pay-later" company said on Tuesday, as it reported wider losses for 2022 but an improving performance in the fourth quarter. Klarna posted a full-year operating loss of 10.5 billion crowns ($1 billion) against 6.6 billion crowns in 2021. Gross merchandise volume (GMV) - the value of goods purchased through Klarna - was up 22% and revenue growth was 19%. Klarna said the United States became its largest market by revenue in December, and the group aimed to return to profitability by summer. Siemiatkowski said group growth could accelerate further on the back of the high growth rates in those two countries.
After a bruising year for the sector, fintech startups are prioritizing profitability. The CEOs of Revolut, Klarna, Wefox, and Rapyd outlined the new reality for consumer-facing fintech. "Investors changed the rules of the game overnight," Rapyd CEO Arik Shtilman told Insider. "Investors changed the rules of the game overnight," Arik Shtilman, CEO and founder of $15 billion fintech Rapyd told Insider at the Slush conference in Helsinki. Regardless of whether a focus on profitability has been pushed by investors or not, the tide has now turned for the fintech sector in Europe.
Buy-now, pay-later firm Klarna wants 'a sane market' before IPO. The company is losing hundreds of millions of dollars annually, but says it is reducing credit losses. Klarna took a valuation haircut to $6.7 billion and carried out two rounds of job cuts in 2022. At one time, the company was the most highly valued startup in Europe with a valuation of $45.6 billion. That plunged by 85% to just $6.5 billion as the company raised again this year in a tougher market.
HELSINKI, Finland — Klarna will become profitable again by next year after making deep cuts to its workforce, CEO Sebastian Siemiatkowski told CNBC. Klarna lost more than $580 million in the first six months of 2022 as the buy now, pay later giant burned through cash to accelerate its expansion in key growth markets like the U.S. and Britain. "We're going to return to profitability" by the summer of next year, Siemiatkowski told CNBC in an interview on the sidelines of the Slush technology conference last week. Buy now, pay later firms, which allow shoppers to defer payments to a later date or pay over installments, have been particularly impacted by souring investor sentiment. In the public markets, PayPal has seen its shares slump more than 70% since reaching an all-time high in July 2021.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe global opportunity to disrupt the banks and credit card industry is as big as ever, says Klarna CEOSebastian Siemiatkowski, Klarna CEO, joins 'TechCheck' to discuss if Klarna will have to temper the company's expansion plans, how the company is faring and more.
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