Square acquires BNPL Afterpay in a $ 29 billion deal – Retail Technology Innovation Hub

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Klarna

Afterpay’s rival, Klarna, doubled its valuation in three months to $ 45.6 billion, after receiving investment from SoftBanks Vision Fund 2 in June.

Klarnas’ growth is based on a deep understanding of how consumer buying behaviors are changing, an evolution we believe is accelerating, said Yanni Pipilis, Managing Partner of SoftBank Investment Advisers.

Problems ahead?

In recent times, there has been increasing political and regulatory scrutiny over companies buy now, pay later, based on the concern that they lead consumers to buy goods they cannot afford.

As a result, Klarna embarked on a kind of glamor offensive, targeting traditional banks and credit card companies as well.

This includes the launch of a UK campaign titled #WhyPayInterest.

Through OOH, online, on social media and in print, it aims to highlight the difference between BNPL products and traditional credit cards, challenging what Klarna calls outdated business models and products that don’t serve the best interests of consumers.

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