Klarna launched a high yield savings account in the US as part of a push to broaden its customer relationships and steer more retail deposits into its financial ecosystem, a move that extended the company's offerings beyond its core buy now pay later service.
BACKGROUND AND STRATEGY
Klarna has positioned the account as a way to bring consumers into a daily relationship with its app, Payments Dive reported. The account sits in the Klarna app alongside the Klarna balance and Klarna Card.
The account has no minimum deposit and no monthly fees, and offers round-ups, scheduled transfers and savings goals, according to Klarna.
The account pays an APY starting at 3.28%, with deposits held at partner WebBank, Member FDIC. Chief executive Sebastian Siemiatkowski said: "The average American earns less than half a percent on their savings, not because better options don't exist, but because their bank hasn't had to compete."
MARKET AND REGULATORY IMPLICATIONS
Klarna does not hold a US bank charter, so the accounts are offered through Salt Lake City-based WebBank to qualify for federal deposit insurance, Payments Dive reported.
In Europe, where Klarna already offers savings accounts, it holds more than US$12.3 billion in deposits across 11 markets, the company said.
Other buy now pay later providers, including Affirm, PayPal and Sezzle, are also pursuing moves into banking, Payments Dive reported.
Sources: Klarna, Payments Dive
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