Shopping and payment provider, Klarna has strengthened its offering with an agreement to acquire Italian payment company, Moneymour.
The deal comes as Klarna prepares for its expansion into Italy, with its latest product development hub to be unveiled in Milan.
The acquisition also means that Klarna will gain enhanced access to intellectual property to further improve underwriting capabilities, and additional expertise and competence, as the full Moneymour team will unite with Klarna.
Koen Köppen, CTO at Klarna commented: “We’re impressed with what the Moneymour team has achieved so far, and we are also happy to now progress the establishment of our new product development hub in Milan.
“The talented team has developed an interesting offering for the Italian market, and with their knowledge and expertise we can further strengthen our underwriting capabilities in the market. Under the Klarna umbrella, we will together further develop the proposition and scale this across markets, which will support in accelerating growth.”
Moneymour, founded in 2017, is an Italian payment method that allows consumers to `buy now, pay later’ by splitting their purchases into monthly instalments based on an instant credit assessment.
The Moneymour credit scoring engine is powered by PSD2, as it uses balance and transaction data in the credit scoring algorithm.
Klarna is now powering over 200,000 retailers globally including Luxottica, Calzedonia, Alitalia, H&M, ASOS, Peloton, Abercrombie & Fitch and Samsung. During 2020, Klarna will continue its growth in current markets as well as enter new markets, the most recent example being in Australia. Establishing a new product development hub in Milan will support the growth efforts on the fast growing Italian ecommerce market.
Expert Analysis: This acquisition can undoubtedly be key in Klarna’s expansion into Italy, the offering of Moneymour can accelerate the process of Klarna becoming an established firm within the growing Italian market.