Klarna introduces new credit card for US consumers: A Swedish Fintech innovation

Klarna, the Swedish fintech company, is making a major move into the US credit card market, according to an exclusive report by TechCrunch. The company is set to launch a new credit card that will revolutionize the industry by providing customers with flexible payment options and prioritizing the use of installments – a feature that has been a key factor in the success of its popular Buy Now, Pay Later (BNPL) services.

This move is expected to significantly disrupt the credit card market in the US and provide consumers with more convenient and affordable payment options.

Flexible Payments, Perks, and AI Integration

“Our customers have been asking for a card product for a long time,” says David Fock, Chief Product and Design Officer at Klarna. The new Klarna credit card stands out with no annual or foreign transaction fees.

Users can earn up to 10% cashback at select merchants when shopping through the Klarna app. Plus, Klarna’s AI integration helps shoppers find discounts on upcoming purchases. For contactless payments, the virtual Visa card is seamlessly compatible with Google Pay and Apple Pay.

Interest Rates and Waitlist Access

Shoppers can choose to pay their purchases in full within a month, interest-free. For bigger purchases, they can opt to pay over the next month with interest or spread payments across 3-6 months (also with interest). Interest rates range from 14.99%- 33.99%, on par with some BNPL offerings but higher than some traditional credit cards. Interested customers can join a waitlist for early access.

This credit card launch solidifies Klarna’s position in the US financial market. The US is already Klarna’s largest revenue source, with over 34 million American users as of February 2023. By diversifying its offerings, Klarna aims to become a dominant financial service provider in the US.