HONG KONG--(BUSINESS WIRE)--Hong Kong-based financial management company, Oak Stone Limited, has commented on the financial services affiliate of Alibaba Group Holding Ltd agreeing to buy a minority stake in Klarna the Swedish payments firm.
“Ant Financial, the owner of the global payment platform Alipay, is formulating an expansion of their current collaborations, including the AliExpress partnership which lets Alibaba Group users access Klarna’s “pay later” service,” commented Michael Pearson, Head of Corporate Equities at Oak Stone Limited. “At this stage, terms of the deal have not been disclosed” Michael Pearson added.
Researchers from Oak Stone Limited further commented that Ant Financial is now considered the most significant player in China’s $27 trillion payments market and is expanding into consumer lending. This results in excellent news for customers who may not necessarily have formal credit histories, now allowing them access to loans via a few taps of their smartphones.
“It will be a similar model to Klarna, who offer short-term credit for online shopping. They will front the bill for customers and let them pay later in instalments or 30 days after the delivery,” commented James Burnley, Head of Wealth Management at Oak Stone Limited.
Backed by the rapper Snoop Dogg and Sequoia Capital, Klarna has been riding a wave of recent investments in fintech firms. The company raised $460 million in August with a valuation of $5.5 billion.
Fintechs are targeting younger users accustomed to handling their banking and shopping on their smartphones which is now challenging the more traditional banks and credit card companies.
“Klarna is now used by over 200,000 retailers and e-commerce platforms including popular brands like H&M, Ikea and Nike,” added Mr Burnley of Oak Stone Limited.
In the last month and for an undisclosed sum, Klarna has also agreed to buy the Italian payment platform Moneymore, giving the company access to underwriting capabilities.
About Oak Stone Limited
Oak Stone Limited was established in late 2014 within the financial heart of Hong Kong. The company has since grown into a leading wealth management company in the Asia-pacific region, serving both individual clients and institutions.