Credit Cards

Klarna Officially Launches Klarna Card in the U.S.

Earlier this year, the popular “buy now, pay later” (BNPL) platform Klarna announced plans for a Klarna Card, opening a waitlist for the product. Today, the card is officially launched in the United States. Moreover, the company has also introduced a suite of Financial Overview features to its app.

First, Klarna Card customers have the choice between two card designs: black or pink. Then, once approved, cardholders will be able to split any of their purchases made with the card into four payments, albeit without the down payment that Klarna typically requires. Plus, customers will be able to earn rewards for completing “Missions” and will be able to redeem them in the app. According to the company, signing up for Klarna Card will not impact customers’ credit scores.

Notably, unlike traditional credit cards, the Klarna Card does not charge customers interest on purchases. Instead, the card does come at a monthly fee of $3.99. However, this fee is currently waived for new customers during their first 12 months.

Another unique element of the Klarna card is that it utilizes bi-weekly statements. This is in line with the company’s “pay in four” model, which requires payments every two weeks. Customers can also opt-in to have these payments made automatically.

In addition to the debut of Klarna Card, the company is also rolling out new Financial Overview features. These include Budgeting, Categorization, and a monthly spending breakdown. This new platform is available in the Klarna app.

Announcing the new product launches, Klarna’s co-founder and CEO Sebastian Siemiatkowski stated, “The fact that over 1 million US consumers signed up to our waitlist in a matter of weeks demonstrates the incredible demand for a fair and transparent alternative to conventional credit cards. By placing the power of our ‘Pay in 4’ service in consumers’ pockets, the Klarna Card lets them experience the convenience, flexibility and control of interest-free shopping wherever they go.”

Siemiatkowski continued, “In combination with our new, intuitive Financial Overview dashboard in the Klarna App, we make it easier than ever for consumers to understand their spending habits and manage their budget, placing them in the driver’s seat of their financial future.”

To be clear, the Klarna Card isn’t really a traditional credit card. In fact, while it might look like one on the surface, the company seems intent on positioning it as the anti-credit card, boasting the benefits of its “buy now, pay later” model instead. Ultimately, it’s hard to say which is better for most consumers as both can be dangerous in the wrong hands. Nevertheless, with BNPL continuing to grow, it will be interesting to see whether the Klarna Card will catch on as well.