Klarna broke the $1 billion in revenue for the first time in 2020. The shopping payments company did that off of strong growth globally, but especially in the U.S.
The Klarna app was one of the top 10 most downloaded shopping apps during Q4 2020. App usage is increasing as Klarna rolls out more functionality, like rewards, price drop notifications, and delivery tracking. US app installs grew 2.6X over 2019 numbers and monthly active users grew 3X.
The DTC part of Klarna’s business is growing extremely quickly, getting 30,000 to 50,000 consumers downloading our app per day. That’s about 1 million consumers a month. There’s a flywheel effect at work: more customers mean more large retailers like Etsy, Macy’s, and Sephora. And more retailers give more reasons for future consumers to sign up.
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When Klarna’s David Sykes was on the Tearsheet Podcast in February 2021, he said the firm had hit 15 million users in the U.S. The company says the growth is being driven by the fact that it’s focused on becoming a consumer focused brand. “We joke internally that there must have been like a Mad Men episode that said blue is the color of trust because almost every single financial institution in the world is blue,” Sykes said.
“We made this bold decision to be pink. We made the decision to be carbon neutral. We really want to build a brand that resonates with a different type of shopper, a younger shopper, a more socially conscious shopper.”