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!
