Klarna has launched its own Visa debit card as the Swedish fintech continues to diversify beyond buy now pay later (BNPL) services.
Founded in 2005, Klarna helped BNPL checkout options go mainstream but has since added banking services in a bid to shift its perception as the poster child of the delayed-payment method.
The company on Tuesday announced the pilot of the Klarna card product to trial with a small number of US customers. The Klarna Card will allow consumers to store money with the fintech, make transfers and integrates with Klarna’s “Pay in 4 and Pay Later products.
“I have a huge job to do when it comes to positioning buy now, pay later as a fantastic feature of Klarna, but not being Klarna,” says the company’s chief marketing officer David Sandstrom. “Klarna is moving rapidly into becoming a retail bank.”
The product will initially launch in the US — Klarna’s largest market by revenue and where 5m are currently on the waitlist — where it will be issued by WebBank so the consumer can benefit from Federal Deposit Insurance Corporation insurance protection, which typically protects deposits up to $250k.
The banking push will see the Swedish fintech muscle up against retail banking heavyweights including JPMorgan Chase, Citigroup and Wells Fargo. Sandstrom also identified fellow fintechs Revolut, PayPal and Brazilian neobank NuBank as potential competitors in its push into banking services.
The product will launch in Europe later this year where Klarna holds a European banking licence through its Swedish entity but customers will have to wait a little while longer for a UK launch, says Sandstrom.
“The UK is a very special setup for us after the UK left the EU,” he says. “That’s actually the only market where we’re not launching this card.”
Read the orginal article: https://sifted.eu/articles/klarna-debit-card/
