Klarna is rolling out an „account” where customers can store money and cashback rewards as the Swedish fintech continues to diversify beyond its BNPL roots into more traditional retail banking services.
Klarna, the AI-powered global payments network and shopping assistant, has launched two new products tapping into retail banks’ core business: everyday spending and saving. „Launched in 12 countries across Europe and the US, this marks a significant step forward in Klarna’s mission to disrupt retail banking and become an every day spending partner to the world’s consumers.” – according to the press release.
Klarna balance allows consumers to store money in a Klarna ‘account’, adding money directly from their bank account, receiving cashback rewards for shopping in the Klarna app, or receiving refunds from returned items.
Cashback rewards consumers who shop in the Klarna app. Shoppers earn a percentage of purchases at participating retailers, and the money is stored in their Klarna ‘balance’ account.
Sebastian Siemiatkowsk – Co-founder and CEO of Klarna says: “Klarna owes everything to our loyal network of millions of consumers. These new products make it easier for customers to manage multiple scheduled payments, helping our customers use Klarna for more frequent purchases and driving loyalty. 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 launches are a major step forward, allowing consumers to earn money while they shop and manage it in a Klarna account.„
With cashback, consumers can earn money back on everyday purchases. The cashback percentage varies by retailer but can be as high as 10%. Unlike specific coupons, sales, or deals, cashback functions like real cash, giving consumers the flexibility to spend it wherever Klarna is available.
The product launches come hot on the heels of the new Klarna Card, announced in the US on April 17. Already a hit in Sweden, Germany, and the UK, the Klarna Card offers a fairer and more sustainable option to traditional high-cost credit cards, enabling consumers to shop and pay how they want.
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Many more interesting quotes in the video below:
