(Jeet) Surinderjit Kaur Bhatti’s Post

Klarna is launching their credit card in the U.S. This is what Andrea Rusnak, Director, Payments Group at Engage fi thinks about this move: Klarna requirements for U.S. citizens to be eligible is that you are at least 18 years old, have a bank account, and can receive texts. Applicants must also have a “positive credit history.” Klarna is a Buy Now Pay Later company and we’ve seen that BNPL usage is two times more likely than other generations to utilize this type of payment option at online checkout. This allows your consumers the ability to purchase goods and services that they need now but offers them the flexibility in the payback option to their financial institutions. This is a short-term financing option that has become more popular among consumers and retailers. Read the story here: https://lnkd.in/djj62icD

Klarna wants to take on banking with a new savings and cash back offering #Klarna, the Swedish #fintech giant, is once again pushing the boundaries of its offerings, this time by stepping deeper into the banking space. The company has just unveiled two significant products aimed at enhancing the appeal of its buy now, pay later (BNPL) service. Consumers in the U.S. and 11 European countries can now store funds in a Klarna “balance” account, allowing them to manage payments for purchases directly through Klarna. While this account doesn’t yet offer interest in the U.S., it does in Europe, with rates reaching up to 3.58%. Additionally, Klarna is introducing a new cash-back feature that lets users earn rewards on their purchases through the Klarna app, without needing a Klarna-issued credit card. This move not only strengthens Klarna’s position in the BNPL space but also signals a shift towards broader financial services, putting it in direct competition with companies like Apple, Robinhood, and even Revolut in the long run. Founded in 2005 by Sebastian Siemiatkowski, Klarna has grown into a formidable player in the fintech world. Its evolution from a BNPL provider to a company offering more traditional banking products shows a clear ambition to expand its market reach and customer engagement. The article on TechCrunch in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://lnkd.in/d4h8zqKA  - Substack: https://lnkd.in/dzfGJzmW

Klarna’s launch of a credit card in the US represents. a defining moment in the fintech industry as a BNPL player becomes a card issuer.   Card issuers have an opportunity to stay ahead of this new competition – they can capitalize on merchants who are willing to pay more for card transactions that require extra credit risk! This is a perfect time to leverage the Kipp - Authorize More platform, which offers a novel approach to merchant collaboration. #BNPL #payments #creditcards https://lnkd.in/dwBQ8N3M

Swedish fintech giant Klarna is rolling out two new products that could make its buy now, pay later offerings more enticing to use. The company is offering consumers in the U.S. and 11 European countries the ability to store money in a Klarna “balance” account, where they can deposit money directly from their bank account. They can use the money to pay for purchases in full or to pay for their installments when they use Klarna’s BNPL service. Klarna’s marketing slogan for this is “save now, pay later,” the company said. Klarna isn’t offering shoppers interest on that cash account like a typical savings account in the United States yet but “the plan is to get there,” according to a company spokesperson. The company is also offering consumers the ability to get cash back on shopping without using a Klarna-issued credit card. Consumers making purchases through the Klarna app will now be able to earn a percentage of those buys at participating retailers. That money will be stored in their Klarna balance account. The cash-back percentage varies by retailer but can be as high as 10%. It is funded by the merchants, not Klarna. #klarna #fintech #savenowpaylater

BNPL Fintech ? No more! Klarna announced today the coming launch of a New U.S. Credit Card, empowering smarter spending and greater financial control. Klarna Card according to Klarna will be transparent with no hidden fees, give consumers increased payment options, flexibility, and cashback when they use the card in Klarna app. See Klarna Press release here https://lnkd.in/dtGqBe_j. Key features of the new Klarna Card include among others:            No monthly or annual fee Zero foreign transaction fees when shopping abroad       Earn up to 10% cashback when you use the card in the Klarna app       Physical and virtual Visa card compatible with Google and Apple Pay       Flexible payment options with no revolving credit, including Pay monthly statement in full with zero interest, Pay for transactions early with zero interest, Move a purchase due date to the next month's statement (interest applicable)             Pay over time on eligible purchases in 3 or 6 monthly payments (interest applicable)                  Full spending overview in the Klarna app for financial budgeting. BNPL has become a commodity, with many similar services and more that banks and credit unions could offer through their debit card offerings and deploying a BNPL offer for legacy financial institutions won't be a solution when BNPL Fintech are launching debit & credit cards with "traditional" Fintech features. Time for Community Banks/Credit Unions to be able to fight back, now they can through a new technology available to them - MODULAR BANKING TECHNOLOGY. You Want to know more, contact us. #FintechPartnership #digitalbanking #corebanking #bankingsolutions #fintechsolutions #digitaltransformation #fintech #baas #neobanks #challengerbanks #embeddedfintech #creditunions #communitybanks #creditcards #debitcards #embeddedfinance     

Klarna, the Swedish payment service, is actively expanding in the United States and has expressed ambitions to become a bank there as well. CEO Sebastian Siemiatkowski has mentioned that such an expansion would require faster approval processes from American authorities. To strengthen its presence in the U.S., Klarna has already launched several services, including the Klarna Card, offered in collaboration with WebBank. The card allows customers to use flexible payment options both in physical stores and online wherever Visa is accepted. It is positioned as a cost-effective alternative to traditional credit cards, aiming to provide consumers with better financial control. Klarna has also formed significant partnerships with major retailers and service providers in the U.S., contributing to the company’s growing market share. In its latest report, Klarna showed strong growth in the U.S., with a substantial increase in transaction volumes and the number of customers. Klarna is also preparing for a potential public listing in the U.S. The company has confidentially filed for an initial public offering (IPO), reflecting its commitment to the American market. Klarna continues to position itself as a leading player in the global payments market, with the U.S. being a central part of its growth strategy.

Klarna is on a mission to become your one-stop shop for all things financial! 💸 Did you know that Klarna recently launched two new features, Klarna Balance and Cashback, designed to deepen their relationship with customers and increase revenue streams? 👀 Klarna Balance allows users to store money in a dedicated Klarna account and earn cashback rewards on purchases. Klarna Cashback gives users up to 10% back on purchases made through the Klarna platform. 🤑 This is a big move for Klarna, as they position themselves to become a one-stop shop for financial services. What do you think about this strategy? Will it be successful? 🤔 #Klarna #FinTech #Banking #Retail https://lnkd.in/etJxCgzd

#Klarna Gears Up for #US #IPO with Bold Move into Retail #Banking. As Klarna sets the stage for its highly anticipated U.S. IPO, it's not just stepping into the ring—it's taking on traditional retail banks head-on with its latest offerings: Klarna Balance and Cashback tools. Klarna Balance lets users manage money, allowing them to store funds in a bank-like personal account. This account empowers users to make instant purchases and seamlessly pay off #BNPL #Loans. With the #Cashback feature, #Klarna ups the ante, offering customers up to 10% back on purchases at participating #retailers. The best part? These rewards automatically funnel into users' Balance accounts, enhancing their buying power. Klarna's CEO is clear: these #innovations are designed to disrupt retail banking and shift consumer spending and saving directly onto Klarna’s platform. Rolled out across 12 markets, including the #US and #Europe, these features are accessible within the Klarna app under "balance" and "cashback." However, it's not all smooth sailing. Klarna Balance lacks #FDIC #insurance and doesn't permit transfers to external bank accounts, nor does it offer interest for U.S. consumers—a potential drawback. Meanwhile, the Cashback tool shines brighter, presenting a more appealing value proposition. As exciting as these developments are, the big question remains: Will these new products significantly influence Klarna's IPO valuation? That remains to be seen! #fintech #buynowpayater #savenowpaylater #lending #poslending #payments #financialservices #bigdata #ecommerce #shopping #wallets

Klarna is launching his credit card in the US market Klarna is rolling out its credit card in the United States, marking a significant expansion of its offerings. This move comes in response to high demand from consumers and represents Klarna's commitment to providing flexible payment options. The vision behind Klarna's credit card comes from David Fock, the company's chief product and design officer. With a focus on innovation and consumer-centric solutions, Fock and the Klarna team aim to revolutionize the way people pay by offering flexibility and convenience. Klarna is partnering with Salt Lake City-based WebBank to bring its credit card to the US market. Additionally, Klarna has seen significant investment from various sources, fueling its growth and expansion efforts. The launch of Klarna's credit card in the US market positions the company to compete with industry giants like Apple and Robinhood, other big players which recently launched similar cards. With a focus on buy now, pay later options and installment payments, Klarna aims to offer consumers an alternative to traditional credit cards while providing flexibility and convenience. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

Klarna's new Pay-by-bank is going to be interesting to watch. World largest BNPL company is taking on the Visa / Mastercard duopoly. Hardest part about Pay-by-bank is (1) merchant adoptance (2) consumer incentives (ie rewards). Interesting thing about Klarna...they've already solved for both at reasonable scale. (1) 500,000 Merchants use Klarna (2) Klarna can offer rewards to the ~150 million consumers using their products which are merchant funded (in fact many merchants already subsidize BNPL, so this is simply repackaging existing practices) Added bonus -- the newly inked bank accounts can help Klarna w/ underwriting. Visa and Mastercard have incredible network effects. They aren't going anywhere soon, but if anyone can given them a run for their money in certain categories (like large ticket consumer items), it is BNPL providers like Klarna and Affirm by leveraging their massive merchant and consumer footprints.