The primary aim of Bitcoin when it was first created was to replace all fiat currencies with the peer-to-peer payment system supported by its blockchain. Since the release of the original cryptocurrency, the original use of the digital coins has become somewhat muddled amidst the interest in the ocean of cryptocurrencies as investment opportunities.
While Bitcoin set out as a conqueror of fiat currencies, the two are inexplicably intertwined at this stage of the cryptocurrency industry’s development. Fiat and crypto are still being used together to purchase amounts of one to make more of the other. This means that fiat currency payment methods are still an integral part of the cryptocurrency experience, with Klarna and Sofort – both a part of the Klarna Group – becoming increasingly relevant in crypto circles.
Trusted and proven across the world
Founded in 2005 in Sweden, Klarna is a bank that offers online payment solutions and has established an incredible amount of influence in Europe and increasingly so in North America. In 2013, Klarna made the major acquisition of the market leader of eWallets in Germany, Sofort, to then stake out a massive share of the European eCommerce market. The massive online payments company now provides solutions for 80 million consumers across 17 countries.
Klarna and Sofort are becoming go-to payment methods online in many different nations, from being used for all forms of eCommerce across Europe to being utilised by the big-name gaming platforms in North America. As shown in the review of the Canadian iGaming platform 777, Sofort is deployed as an alternative payment method. Due to the exchange and use of money being core to the entertainment medium within iGaming, the use of Sofort by 777 is to credit the company for their very high level of safety protocols.
It is for reasons like this that cryptocurrency platforms, such as Bitcoin exchanges, are adopting the European giant. As is the case in iGaming, exchanges heavily rely on the deposits and withdrawals to function, and so they need to offer trusted, safe, and advanced payment methods to users – which has led to some major brands incorporating the Klarna Group’s solutions.
Major Bitcoin exchanges incorporating Klarna
Being such a big name in the European online payments scene, it shouldn’t come as a surprise that many European-based Bitcoin exchanges make use of Klarna/Sofort as a payment method. The likes of BitPanda HappyCoins, and Bity all allow traders to get their virtual hands on Bitcoins through Klarna or Sofort, but they’re also becoming more prevalent with North American-based exchanges.
In August 2019, it was reported that Klarna had undergone significant investment to help the Swedish company further establish itself in the United States. Klarna’s customer base in the USA has been growing at a rate of 6 million new customers per year, being utilised by over 3000 merchants. We’ve already noted how a popular iGaming brand that offers its services to Canada offers Sofort payments, but they’re not the only ones.
The cryptocurrency exchange platform based in Toronto, Bitrush, offers Klarna/Sofort as a payment option to its customers as does one of the biggest in the world, Coinbase. Coinbase is one of the biggest names in the world of Bitcoin, with the California-based company offering its services in the USA and across Europe. With so much reach, particularly in Europe, it makes sense that Coinbase now incorporates the trusted name of Klarna and Sofort.
The Klarna Group continues to enhance its footing in North America, and while it is still fairly sparingly used by the continent’s leading names in cryptocurrency exchange, Klarna and Sofort are bound to become more prevalent in the years to come.
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