🛒 Klarna Expands into Everyday Spending
Klarna, known for its “buy now, pay later” model, is stepping into new territory with features aimed at everyday spending. On August 15, 2024, Klarna launched balance accounts and cashback rewards in 12 countries, including the US. Klarna balance allows users to add money directly from their bank accounts, store refunds, and receive cashback when shopping within the Klarna app. This move challenges traditional retail banks by providing consumers with an alternative for managing their day-to-day finances.
💰 Cashback: A New Way to Earn
The new cashback feature gives Klarna users a chance to earn back a percentage of their purchases. The cashback percentage can reach up to 10% depending on the retailer. Unlike typical coupons or deals, this cashback functions like real cash, which can be used for future purchases wherever Klarna is accepted. This feature is designed to encourage consumers to use Klarna more frequently, creating a seamless and rewarding shopping experience.
📈 Klarna's Growth Strategy
Klarna’s latest offerings are part of a broader strategy to increase customer loyalty and make Klarna a go-to option for everyday spending. Sebastian Siemiatkowski, Klarna’s CEO, highlighted the importance of these new products: “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.” Klarna aims to become more than just a payment option but a trusted financial partner for everyday transactions.
🗺️ A Global Rollout
These new features were rolled out in 12 countries, including key markets in Europe and the US. This global launch signals Klarna's ambition to compete with retail banks and dominate the everyday spending market. Following the success of the Klarna Card, which launched in the US in April 2024, Klarna is positioning itself as a significant player in the financial services industry, expanding beyond its origins in Sweden to capture a larger share of the global market.
Would you switch from your bank to Klarna for everyday spending?
