Competition, page-8

Regarding competition, I’ve been watching Klarna’s US growth markets. 

It’s clear that Klarna’s business focuses on high expense, low frequency purchases. 

They are targetting 
- jewellery brands 
- mattress and furniture companies 
- electronic systems specifically big ticket items I.e speakers (notably Sonos) 

this differs to Afterpay’s focus on high frequency, low/mid expense purchases. E.g 
- fashion brands 
- cosmetics 
- accessories 

While I don’t think Klarna’s target markets are as appealing as APT’s (mattresses don’t have the same hype as say F21 or Nike) I am disconcerted by the strategic differentiation Klarna is going after, securing a place in the US BNPL sector. 

On the other hand, sezzle remains not be a threat. 

Looking forward to the next bus update and hopefully some US services (dental, medical) introduced not before long!