Klarna is launching an ‘account’ where customers can store money and cashback rewards, as the Swedish fintech company continues its expansion beyond its BNPL roots and into more traditional retail banking services.
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Launched in 12 countries in Europe and the US, Klarna Balance allows users to store money in an “account” and deposit it directly from their bank account.
In addition, a cashback feature rewards users who shop in the Klarna app. Shoppers receive a percentage of their purchases at participating retailers and the money is stored in their Klarna credit account.
Shortly after the launch of the Klarna Card in the USA – which is already in use in some European markets – Klarna wants to take the edge off the banks with its new products.
Sebastian Siemiatkowski, CEO of Klarna, says: “We are already one of the most trusted brands in financial services and we want to build on that to support all consumers with their everyday spending. Today’s product launches are a big step forward, enabling consumers to earn money while shopping and manage it in a Klarna account.”
The diversification comes as Klarna seeks financial advisers for a U.S. IPO, which is expected to take place in the first half of next year.
