Klarna Goes Live with SAP’s Smart AFI

By Julie (Schicktanz) Muhn Finovate

Online payment solutions company Klarna has made a move that furthers its goal to become “the world’s favorite way to buy”. The Ohio-based company has gone live withSAP’s Smart Accounting for Financial Instruments, (Smart AFI).

The new solution, which is compliant with International Financial Reporting Standards (IFRS) and U.S. GAAP standards, comes as a part of SAPs Bank Analyzer 9.0 release. Using the new offering, Klarna will supply a centralized subledger for banks that integrates directly into a company’s accounting documentation chain. This will allow for easier geographical expansion, since it can handle multiple GAAP policies and the ability to offer more products.

“Our growth necessitated a centralized accounting system, one that gave us visibility across regional lines of business,” said Max Fischer, vice president, Klarna. “We were concerned that getting that visibility would take a substantial amount of time and resources, but with SAP we were able to do it in only three months and with zero lag time in operations. It’s had a positive impact on our business.”

Klarna serves 45 million customers and works with 65,000 ecommerce merchants. At FinovateSpring 2012, the company demoed its technology that offers after-delivery payment, which ensures buyers receive the goods they ordered before the payment is due. As a perk to retailers, Klarna assumes the credit and fraud risk of a transaction to ensure retailers receive payment. Spotify, Disney, and Samsung are among the company’s clients.

Founded in Stockholm in 2005, but making its U.S. debut just one year ago, the company is headquartered in Columbus, Ohio and has offices in San Francisco and New York City. Klarna raised $35 million bringing its total funding to $291 million from 12 investors.

First appeared at Finovate Blog