2025-11-03
Klarna — the art of turning payments into emotion
In 2021, fintech was the loudest word in tech.
Every startup wanted to redefine how people pay — faster, smoother, more digital.
But I wasn’t drawn to speed. I was drawn to feeling.
Because finance isn’t only about numbers — it’s about trust, aspiration, and emotion.
And Klarna understood that before anyone else.
It didn’t just make “Buy Now, Pay Later” convenient —
it made it beautiful.
Every startup wanted to redefine how people pay — faster, smoother, more digital.
But I wasn’t drawn to speed. I was drawn to feeling.
Because finance isn’t only about numbers — it’s about trust, aspiration, and emotion.
And Klarna understood that before anyone else.
It didn’t just make “Buy Now, Pay Later” convenient —
it made it beautiful.
1
The idea that stood out
Most financial companies try to look like banks.
Klarna looked like a brand people love to use.
It didn’t sell credit — it sold confidence. It made payments feel like an extension of taste.
When teenagers started mentioning Klarna alongside Spotify and Apple Pay, it was clear: this wasn’t about finance anymore. It was about identity.
That was the moment I decided to invest. Back in April 2021, Klarna was the world’s most valuable private fintech — valued at nearly $45 billion.
It was expanding fast across Europe and the U.S., riding the wave of the BNPL revolution. But underneath the growth, there was something rarer — a company building emotional connection around a transaction.
Klarna looked like a brand people love to use.
It didn’t sell credit — it sold confidence. It made payments feel like an extension of taste.
When teenagers started mentioning Klarna alongside Spotify and Apple Pay, it was clear: this wasn’t about finance anymore. It was about identity.
That was the moment I decided to invest. Back in April 2021, Klarna was the world’s most valuable private fintech — valued at nearly $45 billion.
It was expanding fast across Europe and the U.S., riding the wave of the BNPL revolution. But underneath the growth, there was something rarer — a company building emotional connection around a transaction.
2
What the numbers say — and what they don’t
Dataminr was building a system that could read the pulse of the world.
Not through traditional media or financial reports — but through the chaos of the internet.
Every tweet, photo, video, or message online — all of it carries signals.
Dataminr’s AI could detect the earliest traces of a developing event: a protest forming, a fire starting, a factory explosion, or a cyberattack spreading — often hours before any official confirmation.
When I first saw that, it didn’t look like a business.
It looked like science fiction. And that’s exactly why I invested.
Back then, in May 2021, the company was valued at $4.1 billion.
The global conversation about AI was still shallow — assistants, automation, convenience.
But Dataminr was quietly solving a much deeper problem: awareness in real time.
Not through traditional media or financial reports — but through the chaos of the internet.
Every tweet, photo, video, or message online — all of it carries signals.
Dataminr’s AI could detect the earliest traces of a developing event: a protest forming, a fire starting, a factory explosion, or a cyberattack spreading — often hours before any official confirmation.
When I first saw that, it didn’t look like a business.
It looked like science fiction. And that’s exactly why I invested.
Back then, in May 2021, the company was valued at $4.1 billion.
The global conversation about AI was still shallow — assistants, automation, convenience.
But Dataminr was quietly solving a much deeper problem: awareness in real time.
3
The competitive landscape
By 2025, the BNPL battlefield had thinned out. Many players grew fast — and fell just as quickly.
Here’s the reality:
Where others focus on interest rates and margins, Klarna focuses on design, tone, community, and trust.
If PayPal is scale, Klarna is style.
Here’s the reality:
- Klarna — $19.6B valuation — global presence, profitability, lifestyle brand
- Affirm — $17B — U.S. leader, strong GMV growth, limited global reach
- Afterpay — $45B — integrated into Square, slower growth
- PayPal — $70B — scale and ecosystem, but BNPL is a minor segment
Where others focus on interest rates and margins, Klarna focuses on design, tone, community, and trust.
If PayPal is scale, Klarna is style.
4
Evolution since entry
Between 2021 and 2025, Klarna doubled its revenue, grew users by 85%, and expanded its merchant network by 216%. But more importantly — it evolved beyond BNPL.
Today Klarna is not just a payment button — it’s a shopping and discovery ecosystem, connecting users, brands, and experiences.
Its interface feels more like Pinterest than a bank app. And that’s intentional. Klarna redefined fintech not by inventing a new financial model — but by humanizing an existing one.
Today Klarna is not just a payment button — it’s a shopping and discovery ecosystem, connecting users, brands, and experiences.
Its interface feels more like Pinterest than a bank app. And that’s intentional. Klarna redefined fintech not by inventing a new financial model — but by humanizing an existing one.
5
What I see in it now
Klarna is a reminder that great companies don’t just survive downturns — they grow up through them.
When valuations dropped, Klarna focused on fundamentals. When hype faded, it focused on experience. That’s what maturity looks like.
I didn’t invest in Klarna because it was trendy. I invested because it made finance feel alive. It turned paying into a kind of self-expression.
That idea hasn’t aged — it’s only become truer.
When valuations dropped, Klarna focused on fundamentals. When hype faded, it focused on experience. That’s what maturity looks like.
I didn’t invest in Klarna because it was trendy. I invested because it made finance feel alive. It turned paying into a kind of self-expression.
That idea hasn’t aged — it’s only become truer.
Why I share these stories
From time to time, I like to revisit the companies I backed — not only to track numbers, but to understand why they mattered.
Some investments work instantly. Others take years to reveal their real story. Klarna’s story isn’t about fintech. It’s about making something emotional in a space that was always cold and rational.
And that’s the kind of innovation that lasts.
✨ In 2021, Klarna felt like a fashion statement in finance.
In 2025, it feels like proof that emotion — not only data — can drive markets
Some investments work instantly. Others take years to reveal their real story. Klarna’s story isn’t about fintech. It’s about making something emotional in a space that was always cold and rational.
And that’s the kind of innovation that lasts.
✨ In 2021, Klarna felt like a fashion statement in finance.
In 2025, it feels like proof that emotion — not only data — can drive markets
By the way, these investments were made as part of my work with the Digital Disrupt venture club, a community that studies how technology is changing industries and people's behavior.
Tom
Venture Capitalist