Klarna has Announced the First Recipients of Small Business Impact Initiative Grants
Klarna, which is a leading global retail bank, payments, and shopping service, announced the first group to receive grants from the recently launched Klarna Small Business Impact Initiative that will help SMBs recover from a loss of business due to pandemic. Recipients will receive a share of $4.5 million in Klarna services, including one year of fee-free payments and $40,000 in free media that will increase marketing exposure across Klarna's ecosystem.
Over the next few weeks, 100 small businesses from the health and beauty, home & garden, jewelry & accessories, fashion, food & beverage, electronics, and entertainment industries will be chosen. Many of the recipients are minority-owned and female-led businesses that were hardest hit by the pandemic. According to the MetLife and U.S. Chamber of Commerce Small Business Index, 86 percent of minority-owned small businesses are concerned about the impact of the pandemic on their company's future, compared to 72 percent of nonminority-owned businesses. According to a report by Facebook and the Small Business Roundtable, women-owned businesses were seven percentage points more likely to report a sales loss than male-owned businesses.
Klarna connects brands and customers, putting merchants in direct contact with customers without the high fees, restricted access, and anti-competitive behavior of e-commerce behemoths. Recipients of Klarna's Small Business Impact Initiative will receive a variety of services aimed at increasing engagement, conversion rates, average order value, number of new and repeat users, and overall brand loyalty and preference.
At Klarna, shopping is made smooth. Customers can use Klarna to buy now and pay later, allowing them to get what they want right away. Payments, social shopping, and personal finances are among the services provided by Klarna to consumers and retailers. Klarna's innovative shopping experience is available online and in-store thanks to over 250,000 retail partners, including IKEA, H&M, Expedia Group, Samsung, ASOS, Peloton, Nike, Abercrombie & Fitch, and AliExpress. Klarna, with a valuation of $45.6 billion, is one of the world's most valuable private fintech. Klarna was founded in 2005, employs over 4,000 people, and operates in 17 countries.