Klarna launches Small Business Impact Initiative to help small and medium-sized businesses

Klarna today announced it is donating $4.5 million in free services to small and medium-sized enterprises to aid them in recovery. In honor of Small Business Month, from May 10–31, 2021 small businesses can apply to receive one free year of payment services and $40,000 worth of free media services from Klarna.

According to a recent report by Facebook and the Small Business Roundtable, 22% of US small businesses were closed in February 2021, nearing the pandemic peak of 23% in May 2020. Of those impacted, minority-owned businesses suffered the greatest losses, with 27% of minority-led SMEs reporting closures versus 18% of other businesses. Additionally, 25% of female-led businesses reported closures, a disproportionate amount compared to other businesses.

Klarna will select 100 small businesses from the applicant pool, focusing on those that were most impacted by the pandemic, including minority and female-led businesses, to receive fee-free payment services and marketing exposure across Klarna’s ecosystem.

“Small businesses are the lifeblood of the US economy, and it’s no secret they have been hit especially hard by the COVID-19 pandemic. With consumers shifting more of their shopping toward e-commerce, these businesses have seen higher rates of store closures, layoffs, and reduced hours and wages,” said David Sykes, Head of US, Klarna. “As the economic recovery gains steam, Klarna is proud to offer small businesses the support, visibility and flexibility needed to make a successful comeback.”

With a network of 16 million US shoppers and over 250,000 retail partners globally, Klarna continues to demonstrate it is more than a payments platform—it is also a marketing growth engine and advocate for brands, big and small. By donating these services to small businesses, Klarna will enable them to unlock a new customer base, gain greater exposure and product visibility, and build brand affinity through relevant content curation, all with a high level of independence and control.

According to new research by Klarna, a leading global retail bank, payments and shopping service, which surveyed over 41,000 shoppers across the US to understand the pandemic’s lasting impact on consumer spending behavior. 

Klarna’s survey also found that safety precautions will be the top priority for nearly three-quarters of consumers (74%) shopping in-store, even when the country opens up more widely. Deals and discounts are also an important draw for 73% of those planning to shop in brick-and-mortar stores this year, followed by fast and convenient pickup and returns (63%), and the availability of customer service (46%).

Small businesses can apply to participate in Klarna’s program here. *Note: businesses must be integrated with one of Klarna’s affiliated partner platforms, such as Shopify, WooCommerce, BigCommerce, Shift4Shop or Magento to apply.