Klarna is a European based provider of payment solutions for e-commerce. Klarna separates buying from paying by allowing buyers to pay for ordered goods after receiving them, providing them with an after delivery payment solution. At the same time, Klarna assumes all credit and fraud risk for e-stores so that sellers can rest assured that they will always receive their money. Klarna’s mission here is to create a buying experience to buyers and sellers with less friction.
Klarna’s business model relies on only charging for approved purchases, which means that Klarna always works towards increasing stores’ sales. Using data that has been gathered through purchases over several years, Klarna can create and continually improve their algorithms for acceptance rate.
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