Klarna Acquires Laybuy and Plans to Relaunch in New Zealand

On August 21, 2024, Klarna, the Swedish fintech company renowned for its AI-powered payments network, announced its acquisition of Laybuy’s assets in New Zealand. The move comes as Laybuy, a prominent buy now, pay later (BNPL) firm, ceased operations in June due to financial difficulties. Klarna plans to relaunch Laybuy’s services in New Zealand within the coming weeks.

David Sykes, Klarna’s Chief Commercial Officer, expressed enthusiasm about the acquisition: “Laybuy established itself as a cherished brand in New Zealand, and we’re excited to build on those foundations to take Laybuy to new heights under the Klarna umbrella. We have some truly exciting plans and can’t wait to begin sharing them with consumers and merchants.”

A Revitalised Laybuy

Founded in 2017, Laybuy gained significant traction in New Zealand with over half a million users and a network of more than 10,000 merchants. The firm offered no-interest, flexible payment options, which resonated well with consumers. However, financial struggles led to its receivership earlier this year.

Klarna’s acquisition aims to restore and enhance Laybuy’s platform, leveraging Klarna’s global expertise and robust technological infrastructure. Klarna, which currently supports over 85 million active users and handles 2.5 million transactions daily, promises improved payment flexibility and user experience for both consumers and merchants in New Zealand.

Compliance and Future Plans

Klarna has committed to complying with local regulatory requirements while revamping Laybuy’s operations. The company will focus on addressing clients’ evolving needs and preferences in the competitive BNPL market. Klarna’s extensive global network, including partnerships with major brands such as Uber, H&M, and Nike, is expected to contribute positively to Laybuy’s revitalisation.

As Klarna begins reconnecting with Laybuy’s former customers, it will provide updates on the service’s upcoming changes and enhancements.

Conclusion

Klarna’s acquisition of Laybuy represents a strategic effort to reinvigorate a once-prominent BNPL service in New Zealand. With Klarna’s significant resources and technological capabilities, the relaunch aims to offer enhanced payment solutions and maintain a high level of service for consumers and merchants in the region.