Klarna takes on retail banks with new balance & cashback tools

By Gloria Methri

Swedish FinTech giant Klarna has launched two new products that tap into retail banks’ core business: everyday spending and saving. Launched in 12 countries across Europe and the US, the move furthers Klarna’s mission to disrupt retail banking and become a daily spending partner to consumers worldwide.

Klarna balance allows consumers to store money in a Klarna ‘account’ directly from their bank account. They can receive cashback rewards for shopping in the app or refunds for returned items. Cashback rewards consumers who shop in the app. Shoppers earn a percentage of purchases at participating retailers, and the money is stored in their Klarna ‘balance’ account.

Co-founder and CEO Sebastian Siemiatkowski, said, “Our new products make it easier for customers to manage multiple scheduled payments, helping our customers use Klarna for more frequent purchases and driving loyalty. We are already one of the most trusted brands in financial services, and we want to build on that to support all consumers with their everyday spending. Today’s launches are a major step forward, allowing consumers to earn money while they shop and manage it in a Klarna account.”

With cashback, consumers can earn money back on everyday purchases. The cashback percentage varies by retailer but can be as high as 10%. Unlike specific coupons, sales, or deals, cashback functions like real cash, giving consumers the flexibility to spend it wherever Klarna is available.

The product launches follow the new Klarna Card, announced in the US on April 17. Already a hit in Sweden, Germany, and the UK, the card offers a fairer and more sustainable alternative to traditional high-cost credit cards, enabling consumers to shop and pay how they want.