The UK’s financial regulator has awarded Klarna a regulatory licence which will allow the Swedish fintech to offer banking services in the country.
Founded in 2005 by Sebastian Siemiatkowski, Klarna made its name by mainstreaming its flagship buy now, pay later (BNPL) product, which allows shoppers to delay or split payments.
But the company has been aiming to expand beyond BNPL, by pushing into services offered by neobank competitors.
Klarna’s authorisation as an Electronic Money Institution (EMI) in the UK will enable the fintech’s customers to hold and manage money in a Klarna account. Customers can top up the balance from their debit card and use it to spend with Klarna and earn up to 10% cashback when they shop.
This authorisation marks Klarna’s next big step in the UK — moving beyond flexible payments into everyday financial management,” Abby Vickers, head of Klarna’s UK subsidiary, said in a statement.
The regulatory rule-in is the Swedish fintech’s latest step in its shift to branding itself as a consumer neobank following its delayed IPO this year.
In June this year, Klarna joined fellow fintechs Revolut and N26 in launching mobile phone plans. In the same month, the fintech also launched its own Visa debit card for US customers, which allows consumers to store money with the fintech, make transfers and integrates with Klarna’s Pay in 4 and Pay Later products.
Read the orginal article: https://sifted.eu/articles/klarna-banking-products/
