Shopify partners with Amazon to bring "Buy with Prime" to its US sellers

Shopify partners with Amazon to bring "Buy with Prime" to its US sellers, Klarna is ready for an IPO according to the company’s CEO, and JPMorgan increases its stake in Brazilian digital bank C6

Hi!

Shopify sold its logistics business earlier this year and now partnered with Amazon to give its merchants access to Amazon’s logistics network. The investors seem to notice, as they now value Shopify higher than Citigroup. More on that in today’s newsletter:

• Shopify partners with Amazon to bring "Buy with Prime" to its US sellers,

• Klarna is ready for an IPO according to the company’s CEO, and

• JPMorgan increases its stake in Brazilian digital bank C6

Thank you for reading and have a great weekend!

Jevgenijs

p.s. have feedback? DM me on Twitter

Shopify Partners with Amazon to Bring "Buy with Prime" to Its US Sellers

Amazon (NASDAQ: AMZN) and Shopify (NYSE: SHOP) have reached an agreement to allow Shopify's merchants to utilize Amazon's logistics network. This collaboration will enable Shopify sellers in the US to access Amazon's "Buy with Prime" feature in Shopify’s Checkout. Merchants using the Shopify platform will be able to provide Amazon Prime members with Prime benefits like fast and free delivery, while Shopify will handle payment processing using its Shopify Payments infrastructure. The program started for select Shopify sellers and will be available to all interested Shopify merchants by the end of September.

Until recently, Shopify tried to build a competitor to Amazon’s logistics network. The company started experimenting with shipping and delivery in 2015 with the launch of Shopify Shipping. In 2019, Shopify launched the Shopify Fulfillment Network, a network of partner-operated and fully-owned fulfillment centers across the US. The company then acquired a warehouse robotics company 6 River Systems for $450 million in 2019, and a fulfillment technology provider Deliverr for $2.1 billion in 2022. Nevertheless, earlier this year, Shopify announced the sale of its logistics business to Flexport.

Shopify sells its logistics business

Shopify partners with Adyen to pursue enterprise merchants

✔️ Amazon, Shopify Strike Deal to Open Amazon Logistics to Sellers
✔️ Shopify merchants can soon choose to offer Buy with Prime directly within their Shopify Checkout

Klarna is Ready for IPO According to CEO

Swedish “Buy Now Pay Later” giant Klarna reported better than expected second-quarter results. Gross merchandise volume for the quarter increased by 14% YoY to SEK 238.6 billion ($21.8 billion) driving a 17% YoY increase in revenue to SEK 5.5 billion ($500 million). The company noted that its efforts to attract U.S. customers, including a partnership with Airbnb for flexible payments, have contributed to its positive performance. Klarna's credit losses continued to improve, decreasing to 0.41% of GMV compared to 0.80% of GMV in the second quarter of 2022. The company’s Operating loss for the quarter was SEK 0.78 billion ($74 million) compared to an Operating loss of SEK 3.6 billion ($370 million) a year ago.

Klarna’s CEO, Sebastian Siemiatkowski, told the Financial Times, the company is prepared for an IPO when market conditions improve. He outlined three requirements for an IPO: establishing a strong presence in the US, having a sustainable business model, and potential for continued growth. While Klarna is now meeting these criteria, raising funds is not a priority and the timing of the IPO will depend on market conditions, according to Siemiatkowski. Klarna's competitor, Affirm (NASDAQ: AFRM), recently reported better-than-expected results, but its shares remain below their 2021 listing price.

Affirm Card's potential powers stock rally

Fintech Rivalries: How Fintech Companies Stack Up Against Each Other, Part 2

✔️ Klarna reports H1 2023 Results: smashes profitability target, continued growth ahead of e-commerce
✔️ Klarna’s Q2 results include profitable month as GMV continues growth streak
✔️ Klarna ready for IPO when conditions improve, says chief

JPMorgan Increases Stake in Brazilian Digital Bank C6

JPMorgan Chase & Co (NYSE: JPM) raised its ownership stake in the Brazilian digital bank C6 from 40% to 46%, according to Reuters. Since JPMorgan's initial investment in June 2021, C6 has expanded its customer base from 8 million to 25 million, increased its credit portfolio from R$9.5 billion ($1.9 billion) to R$40 billion ($8.1 billion), and introduced new products like auto loans. C6 reported a loss of R$2.2 billion ($0.44 billion) last year, primarily due to increased provisions for credit losses. The financial terms of the transaction were not disclosed. JPMorgan views its investment in C6 Bank as a crucial part of its global strategy for international consumer banking.

Image source: C6 Bank

Thus, earlier in the year, JPMorgan’s CEO, Jamie Dimon, confirmed in an interview with Handelsblatt that the company will be expanding its online UK consumer bank to Germany and other European Union countries. JPMorgan entered the UK market with a digital-only retail offering in 2021 and managed to successfully compete with local digital banks such as Monzo, Revolut, and Starling. While the timing of the expansion is still undecided, Dimon stated that they have ambitious plans for this move. The expansion aims to increase competition for European rivals in the crowded market and target medium-sized firms in Europe's largest economy.

JPMorgan Chase eyes expansion to Continental Europe and Brazil

Nubank reports record profitability

✔️ JPMorgan increases stake in Brazilian digital bank C6
✔️ Coinbase takes stake in stablecoin firm Circle

While JPMorgan is plotting its global dominance, Citigroup (NYSE: C) now has a smaller market cap than Shopify (NYSE: SHOP). I mean… Citigroup is a Global Systemically Important Bank (G-SIB) with $2.38 trillion in assets. Let that sink in.

• Head of B2B Financial Services for North America & Emerging Markets
  @ Amazon
  🇺🇸 Seattle, WA, United States

• Data Science Manager, Amazon B2B Payments and Lending
  @ Amazon
  🇺🇸 Seattle, WA or New York, NY, United States

• Senior Product Manager, Amazon Pay
  @ Amazon
  🇮🇳 Bengaluru, India

• Fintech Partnerships Vice President
  @ JPMorgan
  🇺🇸 San Francisco, CA, United States

• Senior Director of Software Engineering – Payments Platforms
  @ JPMorgan
  🇮🇪 Dublin, Ireland

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Cover image source: Shopify

Disclaimer: Information contained in this newsletter is intended for educational and informational purposes only and should not be considered financial advice. You should do your own research or seek professional advice before making any investment decisions.