4 ms·

1-3% of the transaction volume. That percentage is the 1.4 billion Klarna takes as revenue. The margins of that can be very high.

• lumost 4y ago
  Are we sure that that's true? As a private company klarna can choose any metric they so desire as revenue...
  • christophilus 4y ago
    What? Isn’t revenue kind of … revenue? What else can it be?
    • lumost 4y ago
      To my knowledge, there isn't any reason klarna can't describe their transaction volume as revenue. Then declare their margin 3%. As a private tech company I would assume that they are using the broadest possible definition of revenue.
      • junofan 4y ago
        Dunno about Sweden but lots of compensation stuff triggers financial reporting requirements for obvious reasons.
      • Montaque 4y ago
        No. GAAP and IFRS have very strict definitions of Revenue. Transaction volume falls under the agency principle. Its not the Co's revenue.
        • yobbo 4y ago
          That's not what a klarna transaction is. Klarna pays the vendor immediately (with its credit line), and the user enters into a sort of debt contract with klarna. Klarna's revenue is what it receives from the user. It's a great business model when the interest rate is 0%.
• yobbo 4y ago
  > That percentage is the 1.4 billion Klarna takes as revenue. Implying that transaction volume is on the order of $200 billion? No. For perspective, Amazon's 2018 revenue is $230 billion.
• deleted 4y ago
  [deleted]