The acquisition of Moneymour is the first step in Klarna’s plans to establish a product development hub in Milan, Italy
Swedish bank and payments solutions provider Klarna has signed an agreement to acquire Moneymour, an Italian payments company, for an undisclosed amount.
The acquisition will enable Klarna to further improve its underwriting capabilities by gaining access to the intellectual property of Moneymour.
In addition, the transaction will bring additional expertise and competence to Klarna, as full Moneymour team will join it. The deal will be the first step for the Swedish bank in launching a product development hub in Milan, Italy.
Established in 2017, Moneymour is a payment method that offer ‘buy now and pay later’ service to customers by converting their purchases into monthly installments based on an instant credit assessment.
Moneymour’s credit scoring engine is powered by PSD2, as it uses balance and transaction data in its credit scoring algorithm. The technology is claimed to ensure faster and automated credit decision for customers, requiring only few clicks, compared to lengthy and paperwork-based manual processes.
Moneymour’s technology could be crucial for underwriting credit for millenials
As per Klarna, Moneymour’s technology can be crucial especially when underwriting credit to millenials. After the deal is closed, Klarna intends to Moneymour’s technology across its market to provide enhanced shopping experience for consumers.
The deal is expected to be closed in the first quarter of this year and Moneymour’s operations will be integrated into Klarna.
Klarna chief technology officer Koen Köppen said: “We’re impressed with what the Moneymour team has achieved so far, and we are also happy to now progress the establishment of our new product development hub in Milan.
“The talented team has developed an interesting offering for the Italian market, and with their knowledge and expertise we can further strengthen our underwriting capabilities in the market.
“Under the Klarna umbrella, we will together further develop the proposition and scale this across markets, which will support in accelerating growth.”
Last month, Klarna announced that is ‘buy now, pay later’ services will be available in Australia to Commonwealth Bank customers.
By accessing Klarna through CBA banking app, its customers will be able to access the advantage of price drop and out of stock notifications directly from Klarna. Klarna’s services will also be available to non-CBA customers.