"We don’t think that is a long term sustainable level,we think they (Afterpay) will drop to the same levels we operate at,"he told theSydney Morning Herald andThe Age prior to the launch in Australia.
Klarna is a direct rival to Afterpay,the ASX-listed market darling which has posted a dramatic share price increase in the last few years to become a $10 billion company. Klarna is valued at $US5.5 billion after the latest CBA investment.
Klarna said it has a broader suite of services that will help drive its adoption in the Australian market which is dominated by Afterpay and other rivals like Zip.
Klarna is counting on the adoption of its smartphone app and strong cross marketing from CBA to help introduce local shoppers to a service that offers more than a buy now pay later service.
“There is a global opportunity to create a very different payment experience,a very different online shopping experience across all markets,and that’s the one we are trying to bring to Australia,” he said.
This includes presenting users with images of purchases made,the ability to track deliveries and make returns all via the app.
The main difference to the app in Australia is that it will be seamlessly integrated with the CBA bank app as part of the close tie up between the two companies.