Klarna Prepares for Anticipated US IPO

Hey Payments Fanatic!

Klarna is gearing up for a long-awaited US initial public offering (IPO), enlisting Morgan Stanley, JPMorgan, and Goldman Sachs as lead advisers. The IPO, expected in the first half of next year, aims to capitalize on improved market conditions.

Last valued at $6.7 billion in 2022, Klarna faced a significant drop from its 2021 valuation of $46 billion. This decline highlighted the fintech sector's shift towards profitability over growth. Klarna has reported annual losses for five consecutive years amid an aggressive expansion plan.

Klarna's decision to go public follows confidence in a market recovery by 2025. CEO Sebastian Siemiatkowski indicated that while the company meets IPO requirements, it awaits favorable market conditions.

Cheers,

Marcel

Join my Telegram channel for instant access to daily updates and exclusive breaking news from the Payments industry. Connect with fellow Payments Fanatics and stay ahead with the latest trends and insights.

INSIGHTS

Visa, Mastercard, and China UnionPay Transaction Volumes 2023 .

Let's dive in:

PAYMENTS NEWS

???? End-to-end payments platform, Ecommpay, has fully integrated the Mastercard Click to Pay flow within its online payment interface for merchants across the UK and Europe. It is currently working with Mastercard to onboard a selection of existing customers into Click to Pay for a more secure and seamless payment process.

???? Mangopay enhances payment experience for ManoMano customers and sellers. At the heart of the new collaboration is Mangopay's support for ManoMano's expansion into the enterprise market and providing scalable commerce solutions for major global merchants.

???? JTL-Software GmbH (JTL), a leading German e-commerce solution provider, and the Dutch financial services provider Mollie are entering into a strategic partnership . The decision to partner was strengthened by the already large joint customer portfolio of over 1,600 satisfied customers of both companies.?

???? Sezzle adds Spanish language capability to its BNPL app and checkout. This capability is meant to appeal to the 40 million Americans who speak Spanish , the company said. This addition offers a tailored experience for the 22% of Sezzle users who speak Spanish at home.

???? Allied Payment Network adds Hank Vanjaria as CFO. Allied Payment, a FinTech in real-time, open-network payments solutions to banks and credit unions, announced the addition of Vanjaria as its new Chief Financial Officer to spearhead strategic financial initiatives .

???? Computop brings CloudPOS to over 500 freenet shops. Following the replacement of card terminals across the freenet retail network in Germany, Computop’s A77 Android-based mobile devices will provide a payment alternative with immediate effect .?

???? CloudWalk, a Latin America–focused FinTech startup that sells payments products to small and medium-size businesses, plans to raise up to $400 million at a valuation of at least $4 billion, according to two people who discussed fundraising plans with the company . Financial Technology Partners, a FinTech-focused investment bank, is working on the deal, according to the people, and has advised CloudWalk in previous transactions.

????? Klarna is lining up financial advisers for a long-awaited initial public offering (IPO) in the US that will be among the most anticipated listings in recent years . Morgan Stanley, JPMorgan and Goldman Sachs were in lead positions to secure top roles working on the potential listing of the ‘buy now, pay later’ pioneer, people familiar with the matter told The Financial Times.?

???? Payment orchestration platform FinMont has announced a new partnership with BitPay, a provider of Bitcoin and cryptocurrency payment services. The strategic partnership will see the addition of cryptocurrency to the FinMont payment ecosystem allowing merchants to utilise payments from all cryptocurrencies.

GOLDEN NUGGET

Visa Direct, a global instant payout solution disrupting the B2B payments industry ??

Today, global payouts is a major pain point with very few solutions capable of enabling them, even fewer instantly. The global B2B payments market is playing catch up. Visa Direct and Mastercard Send are using their rails to disrupt that space.

You won't believe me but today, checks account for 50% of B2B payments. Manually intensive payment methods are more likely to have high error or failure rates making companies vulnerable to risk and increasing costs.

Visa built a solution that allows Visa financial institutions and financial institution partners to send push-to-account and push-to-card payouts (i.e. payment transactions) in different markets around the world.

??Push-to-account (P2A)

Send a payout to bank accounts via the Visa network using its Automated Clearing House (ACH) / Real Time Payments (RTP) fulfillment method. The push-to-account service is available cross border!

??Push-to-card (P2C)

A real-time push payment to cards, utilizing Visa's global payment system. Originating Entities can use the Visa network to send money to over three billion eligible Visa card accounts!

Over the past month, 550 enablers are providing Visa Direct in 170 countries:

??Remitters — OnDeck

??Treasury Banks — Bank of America, Wells Fargo

??Marketplaces - StockX, GOAT Group, Bonanza, Instacart

??Global Businesses - Poshmark, eBay, Starbucks, KEH

The new innovative payment solution surged 36% in the last year surpassing 5.9 billion transactions (excluding Russia) across 60+ uses and over 2000 programs.

But why Visa Direct? There are 2 main uses, Person-To-Person Payments and Funds Disbursements ??

P2P Payments:

?? Paying friends and family

?? Splitting bills

?? Sending remittances

?? Account transfers

Funds Disbursement:

?? Reimbursements

?? Refunds

?? Rebates

?? Payouts

?? Loan distributions

?? Government disbursements

This very innovative push-payment solution can help merchants in:

— EU

— North America

— LATAM

— APAC

— Middle East.

It simplifies a complex process providing a fast & convenient experience to reach payees worldwide securely and reliably on the Visa Network.

If you haven't taken a look yet, check it out.

For more incredible solutions you'd like us to dive into, please reach Arthur Bedel ?? ?? ?? I highly recommend following him for interesting articles like this one.

Want your message in front of 100.000+ FinTech fanatics, founders, investors, and operators?

Shoot me a message on?LinkedIn .