- With over one million consumers on the waiting list, the highly anticipated Klarna card is now available in the US, allowing consumers to “pay in 4” anywhere without interest
- The new Financial Overview dashboard in the Klarna app offers budgeting tools, expense insights, and more.
NEW YORK, June 1, 2022 /PRNewswire/ — Klarna, a leading global retail banking, payment and purchasing service that helps consumers save time and money, stay informed and in control, has today announced the launch of the Klarna Card in the United States, bringing the company the popular “Pay in Service 4” on a physical VISA card form. The Klarna card, issued by Webbank, allows consumers to pay over time in four interest-free, deposit-free payments for any in-store or online purchase, providing a welcome and sustainable alternative to high-cost credit cards (see video here). Alongside the launch of the card, a new “Financial Insights” service is now available in the Klarna app, with a host of powerful money management tools to help consumers stay on top of their Klarna purchases and keep full control of their finances every time.
“The fact that over one million American consumers have signed up for our waitlist within weeks demonstrates the incredible demand for a fair and transparent alternative to conventional credit cards,” said Sebastien Siemiatkowskico-founder and CEO, Klarna. “By placing the power of our ‘Pay in 4′ service in consumers’ pockets, the Klarna Card allows them to enjoy the convenience, flexibility and control of interest-free purchases wherever they go. In combination with our new intuitive Financial Overview dashboard in the Klarna app, we’re helping consumers understand their spending habits and manage their budget more than ever, putting them in control of their financial future.”
The Klarna card charges no interest, unlike conventional credit cards which charge US consumers 16.45% APR on average. Instead, Klarna offers a fair and transparent model: the Klarna card is available for $3.99 one month, and is completely free for the first 12 months after activation, allowing consumers to try it for free for an entire year.
As with other Klarna payment services, consumers are rewarded for paying with the Klarna Card. Klarna Rewards Club members using the Klarna Card can earn points by completing “Missions” – small, engaging tasks aimed at encouraging consumers to experience different features of the Klarna app and take control of their finances. Points can then be redeemed in the Klarna app for rewards from world-class brands in the form of gift cards or vouchers.
Consumers pay for their purchases by card through the Klarna app with transparent bi-weekly statements that make it easy to manage and track all overdue payments. Within the app, consumers can choose to pay their statement early or enable “Autopay” to automatically pay on the due date. The Klarna app also notifies consumers in real time of all card transactions and sends alerts for upcoming payments. In combination with spending information from the new “Financial overview” dashboard in the Klarna app, Klarna Card users stay informed about their spending at all times.
The new “Financial Insights” dashboard includes a full suite of money management tools designed to give users full transparency into their spending and enable them to take active control of their finances. According to new findings from Klarna’s Money Management Pulse, only 46% of US consumers say they are organized with their money, and nearly a quarter (22%) don’t save any of their income. To bridge this gap, Klarna’s Financial Insights dashboard tracks all payments made with Klarna and automatically categorizes them, whether consumers purchase with the Klarna Card, in the Klarna app, or with Klarna when paying online. .
Klarna card features include:
- Physical VISA card with a choice of designs in black or pink
- A unique payment experience that allows consumers to split any purchase into four equal payments with no interest and no down payment
- Top brand rewards redeemable in the Klarna app for completing “missions” with the card
- Clear bi-weekly statements for smooth and transparent repayments with automatic payment option on the due date
- Simple and smooth registration process with no impact on credit score
- No exchange fees / Klarna markup
- In-store contactless payment
- Instant push notifications for all transactions, even if a payment is declined
- Overview of all in-app purchases with spend information and automatic categorization
- Quick and easy contactless payments via mobile or wearable device with Apple Pay or Google Pay
- Short-term card blocking quickly and easily via app
- Customer service is available 24/7 in the app
Financial Insight features include:
- Budgeting: Consumers can set themselves a monthly allowance to control how much they spend with Klarna. The new in-app bar indicator visually shows how much of the limit set by each consumer has been spent using all Klarna products, helping users budget with more confidence.
- Categorization: All purchases made with Klarna are automatically organized into product categories, from apparel and home to electronics. This new categorization feature allows consumers to understand exactly where their money is going, helping them make more conscious spending decisions.
- Breakdown of monthly expenses: Consumers can track their spending levels month over month and compare it to their average spend via an intuitive and interactive bar chart. Each graph is color-coded to reflect the proportion spent in each category, making it easy to see how spending habits change over time.
Over the past year, Klarna’s US customer base has grown by more than 65%, reaching more than 25 million consumers. The launches of the Klarna Map and Financial Overview Dashboard are the latest in a series of additions to Klarna’s consumer offering in the US. In May, Klarna launched its new Virtual Shopping feature, allowing consumers to browse and shop online with confidence by connecting them directly with in-store experts to receive product advice and inspiration via live chats and video calls.
Since 2005, Klarna has been on a mission to revolutionize the retail banking industry. With more than 147 million active users worldwide and 2 million transactions per day, Klarna responds to changing consumer demands by saving them time and money while helping them stay informed and in control. More than 400,000 global retail partners, including H&M, Saks, Sephora, Macys, IKEA, Expedia Group and Nike, have integrated Klarna’s innovative technology to deliver a seamless shopping experience online and in-store. With over 5,000 employees, Klarna is active in 45 markets and is one of the most valued private fintechs in the world, with a valuation of $45.6 billion. For more information, visit Klarna.com
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SOURCEKlarna Bank AB (published)