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Klarna takes on banks with new 'account' for storing funds

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.

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Klarna takes on banks with new 'account' for storing funds

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Launching in 12 countries across Europe and in the US, Klarna balance allows users to store money in an ‘account’, adding funds directly from their bank account.

In addition, a cashback feature rewards users 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.

Coming on the heels of the Klarna Card in the US - which is already live in some European markets - Klarna says it wants to take a "bite out of banks’ lunch" with its new products.

Sebastian Siemiatkowski, CEO, Klarna, says: "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."

The diversification comes as Klarna lines up financial advisors for a US initial public offering that is anticipated to happen in the first half of next year.

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Comments: (1)

Jonathan Bowles director at bushido strategy ltd

great initiative and there are many more that could be added but engaging with value add at Klarna is a nightmare 

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