💸 Klarna's New Features: A Banking Disruptor
Klarna has introduced two new products on August 15, 2024, aimed at everyday spending and saving, challenging traditional retail banks. These features launched in 12 countries across Europe and the US, reinforcing Klarna's strategy to become an everyday spending partner for consumers. Sebastian Siemiatkowski, Klarna's CEO, stated that these products are designed to increase customer loyalty by making it easier to manage multiple payments and earn rewards.
🏦 Klarna Balance: Store and Earn
Klarna Balance allows users to store money directly in their Klarna account. This balance can be funded through a bank transfer, cashback rewards, or refunds from returned items. The feature turns Klarna into a quasi-bank account, further integrating it into consumers' daily financial activities. By enabling customers to earn money while they shop, Klarna Balance adds value to their overall shopping experience, potentially drawing more users to the platform.
🎁 Cashback Rewards: Earn as You Spend
The new Cashback feature offers users a percentage of their purchases back when they shop at participating retailers through the Klarna app. The cashback rates vary by retailer and can reach up to 10%. Unlike traditional coupons or sales, cashback acts as real money, giving consumers more flexibility. The earned cashback is stored in the Klarna Balance, enhancing the savings potential within the Klarna ecosystem.
🛒 The Klarna Card: Expanding in the US
The August launches follow the introduction of the Klarna Card in the US on April 17, 2024. This card, already popular in Sweden, Germany, and the UK, offers a sustainable alternative to high-interest credit cards. It allows consumers to shop and pay according to their preferences, further cementing Klarna's role in everyday financial management. As Klarna expands its offerings, it continues to blur the lines between fintech and traditional banking.
Will Klarna's new features make you switch from your bank?
