Klarna CEO Sebastian Siemiatkowski said it was a “very special” moment after the company was given a $19.5 billion valuation after going public Wednesday
Shares of the buy-now-pay-later company rose more than 30% on Wednesday due to the company raising $1.37 billion in its initial public offering. The stock opened at $52 per share, which was higher than its expected $40 pricing.
“It is a fantastic marketing opportunity,” Siemiatkowski told “The Claman Countdown” on Wednesday. “In the U.S., there’s been a demand for an alternative to credit cards. People are tired of getting in debt, tired of the high interest rates that they charge and they want a better product.”
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The company CEO referenced a past study that found 20% of American households are doing well financially, but feel credit cards are a “product of the devil.”
“They want a product that is fixed installments, budgeting, easy to use, they can occasionally use a little bit of credit for zero percent to pay something off on an installment and those 20 percent are the ones we’re catering to,” he explained.
Klarna has become a product a lot of people are using for their “everyday purchases,” Siemiatkowski said.
The company’s Visa-powered debit card has 5 million people on the waiting list.
“If we would even reach five million, that in itself already, would make us one of the bigger card issuers in the U.S. actually,” he told host Liz Claman. “So, it’s a quite interesting start to something that we launched six weeks ago.”
U.S. merchants are paying too much for accepting credit cards and Klarna is giving them an alternative, Siemiatkowski explained.
“We’re offering this to merchants and they’re in themselves offering that to the consumers. So it’s the merchants paying for this because they see that as they give people the 0% interest-free credit on installments, they’re increasing their sales.”
Siemiatkowski touched on his modest beginnings and inspirations that led him to pursue entrepreneurship.
“If you do something good for your customers, then you’re creating a lot of value for society, so it’s inspiring,” he reflected.
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