Klarna confirms that consumers will get a full-fledged bank account with a German IBAN in a press statement.
The account also comes with a Visa debit card that can be linked to both Google Pay and Apple Pay. Additionally, the account allows customers to receive money, set up direct deposits while still eligible for two free ATM withdrawals per month.
However, the service is available only to a limited number of loyal users, with the onboarding of more customers expected in the coming months. This will help Klarna collect and integrate feedback before making the service available on a large scale.
Klarna CEO Sebastian Siemiatkowski acknowledges that there is stil room for improvement to reach more people. Siemiatkowski states that:
“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.”
Klarna’s savings feature
Klarna also plans to add savings goals and savings accounts under the app. The company has already rolled out savings accounts in Sweden under flexible and fixed-term savings accounts.
The Sweden-based firm has experienced record growth in new users, retail partners, and app downloads. The growth has coincided with a period fintech startups surged in users mainly inspired by the pandemic that saw a record shift to digital financial products.