You use Klarna for Buy Now Pay Later (BNPL) at your favorite stores, but have you ever wondered what does “Klarna” mean?
Where did the word Klarna come from anyway?
While Klarna has been making waves in the financial technology and BNPL space for years, most don’t know where the name Klarna actually comes from.
Let’s find out.
What does “Klarna” Mean?
Klarna, is a Swedish word meaning “clear”.
Well that isn’t actually a direct translation but that is where the root word comes from.
Klarna originates from the Swedish word “klara”. In Swedish this means “to clear” or “to be clear”.
The name Klarna was chosen for 3 reasons:
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It reflects the company’s mission of simplifying and streamlining the online payment and shopping experience.
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It’s short, memorable, and easy to pronounce in many different languages. This makes it ideal for a global brand.
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It has a positive connotation, unlike it’s old brand.
Why use a Swedish name? Klarna is a Swedish company.
Klarna was founded in 2005 in Stockholm, Sweden by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson. The trio met while studying at the economics while in college.
By choosing a word that means “clear” the company wanted to signal its commitment to making the BNPL and financial space more efficient.
Rebranding from Kreditor?
Here’s an interesting fact about Klarna, it wasn’t always called Klarna. What the original name for the company? Kreditor…
Yes, that’s right Kreditor was the the original name for Klarna.
Kreditor also has Swedish naming origins. The word is Swedish for “creditor”. The name Kreditor reflected the company’s initial focus on providing invoice-based payment solutions for online merchants and not BNPL services which the company focuses on today.
As the company expanded its financial products and went international, the name Kreditor was not an ideal fit. Espicially with a global customer base.
So, in 2009, the founders decided to rebrand from Kreditor to Klarna.
Klarna better represents the mission of clearing the path for smoother payments and shopping experiences.
And the rest, as they say, is history. The BNPL company has continued to innovate and grow, becoming a major player in the fintech world and now processes over 2 million transactions per day.
What do you think is a better name? Kreditor or Klarna?