Payments firm Klarna adds Lyst to its collection
STOCKHOLM, July 14 (Reuters) - Swedish payments firm Klarna has added online fashion start-up Lyst to its client list as it seeks to step up competition in a sector dominated by giants such as PayPal.
Klarna, which processes 10 percent of European payments and launched last year on PayPal's home turf in the United States, already works with big e-commerce players including Wish, Overstock.com Inc, Shoes.com and ASOS.
The addition of Lyst, which operates as an online mall and personal shopping service with access to hundreds of brands from Burberry to J.Crew, showed Klarna had momentum, particularly in Europe, analysts said.
"It's a signal that PayPal has a harder time in Europe than it does in the U.S.," said Sucharita Mulpuru-Kodali, an e-commerce analyst at Forrester Research.
"Klarna's brand equity is much stronger in Europe. They have strong traction."
Klarna operates across Europe and is especially strong in Scandinavia and Germany.
Founded in 2005 and backed by investors such as Sequoia Capital and Atomico, Klarna is one of Europe's so-called tech unicorns with a $2.25 billion valuation at the end of last year.
Its services allow online consumers to buy goods by entering details such as an e-mail address and zip code. It also lets consumers pay after delivery with Klarna assuming the risk in the interim and paying the retailer immediately.
Nikki Baird, managing partner at Retail Systems Research, said Klarna has been making inroads in a fiercely competitive sector. Continued...