Swedish FinTech unicorn Klarna has bought Italian payment company Moneymour from its founders and minority investors.
The acquisition will enable the buy now, pay later company to gets its hands on Moneymour’s intellectual property, which Klarna stated would improve its underwriting capabilities.
According to Klarna, Moneymour’s technology ensures an ever faster and automated credit decision for consumers as only a few clicks are necessary, rather than lengthy and paperwork heavy manual processes. Klarna believed this solution will be especially useful when underwriting credit to millennials.
The FinTech company’s credit scoring engine is powered by PSD2, as it uses balance and transaction data in the credit scoring algorithm.
Klarna will also benefit from adding Moneymour’s full team and operations to its business through the acquisition, which also marks the first step in launching Klarna’s latest product development hub in Milan.
Moneymour was founded in 2017 as a payment instalment startup similar to Klarna.
“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,” said Koen Köppen, CTO at Klarna. “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.”
The transaction is expected to be completed within the first three months of 2020.
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