Klarna CEO Sebastian Siemiatkowski discusses the future of the company after its $19.5 billion valuation and debut Wall Street on ‘The Claman Countdown.’
Klarna CEO Sebastian Siemiatkowski said it was a « very special » moment after the company was given a $19.5 billion valuation after going public Wednesday
Shares of the buy-now-pay-later company rose more than 30% on Wednesday due to the company raising $1.37 billion in its initial public offering. The stock opened at $52 per share, which was higher than its expected $40 pricing.
« It is a fantastic marketing opportunity, » Siemiatkowski told « The Claman Countdown » on Wednesday. « In the U.S., there’s been a demand for an alternative to credit cards. People are tired of getting in debt, tired of the high interest rates that they charge and they want a better product. »
COSTCO ROLLS OUT BUY NOW, PAY LATER FOR BIG ONLINE PURCHASES THROUGH AFFIRM
The company CEO referenced a past study that found 20% of American households are doing well financially, but feel credit cards are a « product of the devil. »
« They want a product that is fixed installments, budgeting, easy to use, they can occasionally use a little bit of credit for zero percent to pay something off on an installment and those 20 percent are the ones we’re catering to, » he explained.
Klarna has become a product a lot of people are using for their « everyday purchases, » Siemiatkowski said.
Sebastian Siemiatkowski, chief executive officer of Klarna Holding AB, at IFGS 2022 summit at the Guildhall in London in 2022. (Getty Images / Getty Images)
The company’s Visa-powered debit card has 5 million people on the waiting list.
« If we would even reach five million, that in itself already, would make us one of the bigger card issuers in the U.S. actually, » he told host Liz Claman. « So, it’s a quite interesting start to something that we launched six weeks ago. »
U.S. merchants are paying too much for accepting credit cards and Klarna is giving them an alternative, Siemiatkowski explained.
« We’re offering this to merchants and they’re in themselves offering that to the consumers. So it’s the merchants paying for this because they see that as they give people the 0% interest-free credit on installments, they’re increasing their sales. »
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Siemiatkowski touched on his modest beginnings and inspirations that led him to pursue entrepreneurship.
« If you do something good for your customers, then you’re creating a lot of value for society, so it’s inspiring, » he reflected.
