Payments network Klarna is finally bringing its own credit card to the US.
Previously launched in Europe, the Klarna Card will be issued by WebBank and has been designed as a low-cost alternative to traditional credit cards. It enables the company to tap into a market that reached $1.13 trillion credit card debt, last year, a new record high according to the Federal Reserve Bank of New York.
Announcing the move, Klarna said it has opened its waitlist for the new card which offers flexible payment options in both physical stores and online, enabling consumers to make purchases wherever Visa is accepted. Significantly, it will have no foreign transaction fees while abroad.
It will also include an option to pay a monthly statement in full at zero interest, pay earlier than the statement due date at zero interest, or pay over time or move a purchase to the next statement with interest.
Sebastian Siemiatkowski, Co-Founder and CEO of Klarna said: “We’re finally bringing the new Klarna Card to the US market, a product that gives consumers more financial control to choose how they want to pay. Unlike many traditional credit cards, the Klarna Card is transparent with no hidden fees, gives consumers increased payment options, flexibility, and cashback when they use the card in our app, meaning they have a smarter way to manage their finances.”
Additioanlly, when integrating the Card with the Klarna app, users can find the best deal and buy it in just a few taps with a seamless checkout experience. Once purchased, customers have the option to change how they want to repay by updating their payment method and track their spending all in one place, giving them greater financial control.
A recent survey by Klarna and Harris Poll revealsed41% of American credit card users are revolving month-to-month, with approximately one quarter of credit card users saying they have paid their credit card late and incurred a late fee, or had a credit card payment go into debt collection over the last year. Klarna’s data shows 31% of Klarna BNPL users paid their bills early, 65% paid on time, and only 4% incurred late fees in 2023.
