The Swedish fintech company Klarna has been popping-up everywhere recently, but the company has been around for almost two decades. That hasn't been an easy ride and many pivots were needed to hit the growth curve as they do now (and beat the incumbent credit card companies).

A PIVOT FROM BACK-OFFICE PROCESS TO FRONT END EXPERIENCE

To offer a better experience than the traditional credit-card companies, Klarna used an interest-free Buy Now, Pay Later (BNPL) proposition as a wedge to enter into the consumer market. By processing millions of transactions, Klarna gained valuable insights into consumer behavior, which they used to refine their offerings not only for the merchants but also for the end-users. Now most customers don't wait to receive an offer to pay in several installments after the check-out in an online shop, they now use their Klarna wallet as the starting point for their shopping journey.

CONNECTING A FINANCE TOOL TO A SOCIAL NETWORK

A focus on B2B partnerships with retailers allowed them to build a wide network of consumers and collect valuable data. They developed a user-friendly platform that could be easily integrated into e-commerce websites, making it attractive for both consumers and merchants. Klarna's collaboration with popular social media platforms like Instagram and TikTok allows for seamless integration of shopping experiences within these environments. Klarna is launching many new ways to make shopping more social. For example a followable Wish lists.

A SMOOOOOTH WALLET FOR GEN Z Leveraging a fully digital service and collected data, Klarna shifted towards becoming a direct-to-consumer platform and app. Within this transition they decided to focus on a gen Z / Instagram adapted proposition and branding to create a comprehensive shopping experience. Millennials and Gen Z are greatly influenced by social media and recommendations from influencers and other users, when making purchasing decisions. Leveraging such trends in social commerce, Klarna serves as the bridge for the new generations and their preference for felxible or 'smooooth' purchases. This builds significant engagement with the platform. Ask yourself:

• What elements in your back-office processes could maybe be brought more to the front?

• How could you connect more to social media, like platforms?

• And how can you adapt more to the Gen Z way of life?