Klarna Challenges Banks with New Personal Account, Cashback Before IPO
Swedish financial technology firm Klarna is expanding its services by introducing a new product lineup aimed at traditional banking, featuring a checking account-like product called "balance" and a cashback offering. These new products are being launched across 12 markets, including the United States and several European countries. The "balance" account allows users to store money and make purchases instantly, while the cashback feature rewards users for shopping via the Klarna app.
European customers will benefit from earning up to 3.58% interest on their deposits, although this interest feature will not be available to U.S. customers. This initiative marks a significant step in Klarna's strategy to diversify beyond its buy now, pay later (BNPL) services and move into the retail banking sector. The new products could enhance the appeal of Klarna's existing BNPL offerings by providing more flexible payment methods and encouraging users to consolidate their financial activities on Klarna's platform.
