Shrt Klarna facts
E-Cmmerce grwth M: $365 bn G: 12% CAGR R: $3,810 mn M: $39 bn M: $286 bn G: 12% CAGR G: 8% CAGR R: $405 mn R: $2,982 mn M: $296 bn G: 19% CAGR R: $3,091 mn M: $4.8 bn G: 13% CAGR M: $40 bn G: 15% CAGR R: $417 mn R: $50 mn M: $11 bn G: 13% CAGR R: $113 mn 3 Data frm Eurmnitr Internatinal (2013)
Klarna s universe (as f tday): sme f the mst interesting markets fr e-cmmerce glbally Sweden Nrway Denmark Finland Market size 7.2 B Market size 7.9 B Market size 7.4 B Market size 5.4 B E-cmm 74% E-cmm 76% E-cmm 73% E-cmm 65% Bradband 87% Bradband 86% Bradband 85% Bradband 85% UK Germany The Netherlands Austria Market size 96.2 B Market size 50.0 B Market size 9.8 B Market size 9.8 B E-cmm 73% E-cmm 65% E-cmm 70% E-cmm 48% Bradband 86% Bradband 82% Bradband 84% Bradband 77% Surces: Ecmmerce Eurpe 2013, Eurstat 2012, GFK, PstNrd 2012, Dibs 2012
Helping ur 15k+ merchants grw with data driven decisins 30% 20% 10% 0% Demgraphics <26 26-35 36-45 46-55 56-65 65+ 20% 10% 0% Purchase weekday 25% 20% 15% 10% 5% 0% Purchase time 0-3 3-6 6-9 9-12 12-15 15-18 18-21 21-00 Entertainment Electrnics Clthing & Shes Leisure, Sprt & Hbby Hme & Garden Health & Beauty Autmtive Prducts Intangible prducts Children Prducts Fd & Beverage Jewelry & Accessries Surces: Klarna MI, Demgraphics fr Swedish cnsumers, purchase weekday fr German clthing cnsumers, time fr all categries fr all cuntries
The nline payment prcess is brken 100 peple prceed t the checkut But nly 33 cmplete the checkut prcess And nly 3 if they visit n mbile
Shipping address Card hlder s name Mbile number Cntact E-mail address T shp nline tday Firstname lastname Lg in Persnal number Card number Sign up Age CVC Passwrd State Address PO number Cuntry City
Instant nline credit Or as sexy as it cmes: INVOICE
Invice preference per cuntry Germany Hw wuld yu like t pay when shpping nline? Surce: Cint / OpininHUB 2012 Austria Hw wuld yu like t pay when shpping nline? Surce: GFK 2012 52% 27% 8% 7% 2% 1% 49% 25% 16% 7% 3% Invice after delivery Paypal Direct bank transfer Credit card Part payment Other Invice after Credit card Paypal Other Direct bank delivery transfer The Netherlands Hw wuld yu like t pay when shpping nline? Surce: TNS NIPO The Netherlands 2010. The Nrdic cuntries Hw wuld yu like t pay when shpping nline? Surce: Psten Nrden E-handel i Nrden 2011 (Sweden, Nrway and Finland) 45% 33% 9% 8% 5% 34% 29% 24% 10% 3% ideal Invice after delivery Other Credit card Paypal Invice after delivery Direct bank transfer Credit card Cash n delivery Other
Why invice?
Checkut abandn rate is a huge prblem But why d peple drp ut? Q: Hw ften have yu terminated a purchase n the Internet due t the fllwing? I was nt able t pay the way i prefer 71% I did nt feel safe 69% There were sme technical issues in the checkut 59% There were t many steps in the payment prcess 54% I was asked t enter sensitive data 46% I did nt have my credit card details available 17% 12 Lack f safety Lack f preferred payment methds (Only 60% f Eurpeans have VISA/Mastercard) T much frictin
hwever mbile is the final frntier in nline shpping Buy when yu want 20% e-cmmerce traffic thrugh mbile in 2012 3.5x 10 bn increase in mbile cmmerce by 2016 number f smartphnes wrldwide by 2016 Buying n mbile desn t have t be cmplicated Mbile traffic are increasingly pushing alternative payment methds, since cards simply d nt cnvert n the phne 13
Is brwsing really all users want? Hard facts: Mbile traffic bms, but still very few buy stuff Why is that? It is mre r less an accepted fact that users nly want t brwse gds We have always felt, and nw we knw, that is nt true Users lve t buy stuff n their phnes, we just have t make it easier
Welcme t jin the true Mbile Revlutin Implementing Invice, using nly tp f mind inf will dramatically increase cnversin and sales in the mbile channel And with Klarna Checkut, custmers nly need t prvide their e-mail address and pstcde t cmplete a purchase. This simplicity minimizes the risk f cart abandnment and bsts cnversin in the mbile channel t the same level as desktp!!
Cnversin Mbile vs Desktp 25 % 58,66 % 59,02 %