Klarna launches consumer bank accounts in Germany

By Megha Bhattacharya

Global payment and shopping service provider, Klarna today launched consumer bank accounts in Germany in a bid to provide users with more control over their finances. Klarna’s new development is expected to allow customers to track, categorise and analyse their everyday spending using the company application. Klarna stated that the consumer bank accounts will comprise a Visa debit card, which can be connected to both Google Pay and Apple Pay.

Sebastian Siemiatkowski, CEO of Klarna said, “Our focus is to provide a superior shopping experience to our consumers at the intersection of retail and banking. And we know that there’s still massive room for improvement to the way many people bank and save their money today. Users are demanding more seamless, intuitive and transparent services to meet their daily needs, but many banks still do not cater for this. We are very excited to introduce Klarna Banking today, bundling shopping and banking in one app and allowing our consumers to bank in the same seamless way as they shop with Klarna.”

According to Klarna, the new product will provide its customers with an end-to-end experience and enable them to consolidate all their finances in one places. The new bank account will comprise of self-service sign up with Klarna Ident, 3-click transfers, instant top-ups, smart budgeting and Klarna Bank Card. The account also allows direct debit payments or bank transfers for all 36 countries in the SEPA region. The bank account is secured by biometric recognition data including facial recognition and fingerprints.

Recently, the company officially launched in Italy with the release of Pay in 3 solution. Italian customers will now be able to use Klarna’s new shopping solution with H&M, Michael Kors and with several other well-known merchants to follow in future. The Pay in 3 solution will allow Italian shoppers to purchase their goods from their favourite online stores and spread the cost of their purchase over three instalments, charged every 30 days. The service comprises of no interest or fees if the users pay on time. The FinTech has also introduced the Klarna app for allowing users to keep track and manage payments.