Alipay Huabei VS Klarna Pay
Due to fintech trends to dominate in 2020 and beyond, today this blog will introduce two leading fintech firms and their financial products, then demonstrates the similarities and differences.
About Alipay Huabei
Huabei is a consumer credit product launched by Ant Financial, another Alibaba affiliated company, allowing a consumption quota ranging from 500 RMB to 50,000 RMB depend on different credit levels. Ant Financial, the parent company of Huabei, announced a new target on the 14th of November that to support 10 million small and medium enterprises in Europe over the next five years.
Klarna is a native, fast-growing FinTech firm in Europe, that has announced the launch of a new merchant lending product in the UK. Its major services include payment solutions for online storefronts, direct payments, post-purchase payments, and installment. Their core service is to assume stores’ claims for payments and handle customer payments, thus eliminating the risk for seller and buyer.
Similarities and Differences
Huabei and Klarna have much in common, the major similarity is both are leading fintech companies that focus on developing online payment options, such as financing, installment in order to provide better user experience for merchants and consumers.
We will mainly introduce the differences between them. The first point is the difference in user base. Klaran does not have its own E-commerce platform that is a huge disadvantage for Klaran compared with Huabei. Even though Klaran already got lots of users, but it still needs binding its products and services to different online shopping platforms. On the other hand, Huabei is an affiliated company of Alibaba group, it has a native advantage that TaoBao and Tmaill merchants and consumers will interest or accept it automatically. Huabei has a larger user base than Klaran.
The second difference is Klaran is not only a company that offer payment options to the consumer, but also provide financing services to small and medium company in order to help merchants to grow their business size. Klarna reported that the financing plan boosts merchant business growth by 15 percent compared to those who didn’t make use of it. The Huabei only has a unidirectional credit financing plan for consumers.
The last difference is about the installment plan. On the one hand, Klarna offers 3-month interest-free installments for consumers, and that of Huabei only has 41 days. On the other hand, Huabei allowed consumers can repay in 3, 6, 9, 12 months’ installments, which has a more flexible and longer installment plan than that of Klarna.
In conclusion, this blog has already discovered strengths and weakness for Huabei and Klarna, both are efficient and convenient financial service that focuses on promoting purchase process and payment options, the ultimate goal is to enhance their products and service based on user experience.