Klarna Targets Banks With US Savings Account Launch

Klarna has expanded its financial services offering in the United States by adding a high-yield savings account to its app.

The new-to-the-U.S. Klarna Savings accounts are FDIC insured, have no minimum deposit and no monthly fees, enable direct deposit, and currently provide interest rates above 3% APY, the company said in a Tuesday (June 9) press release emailed to PYMNTS.

The savings accounts are provided and held by WebBank, member FDIC, according to the release.

Klarna Savings accounts also features built-in tools such as round-ups, scheduled transfers and savings goals, per the release.

“The average American earns less than half a percent on their savings, not because better options don’t exist, but because their bank hasn’t had to compete,” Klarna Co-Founder and CEO Sebastian Siemiatkowski said in the release. “Klarna is already where millions of Americans manage their everyday spending. Now it’s where they save too.”

Klarna Savings is already available in Europe, where the company has accepted over $12.3 billion in deposits across 11 markets, according to the release.

PYMNTS reported in May that deposits, debit usage and point-of-sale financing increasingly are a part of Klarna’s growth story.

Siemiatkowski said during a May earnings call that the company’s broader engagement push is feeding its banking and deposit operations. Ninety-one percent of Klarna’s funding base now comes from consumer deposits with an average duration of 270 days, he said.

“Everyday spend feeds the deposits. Deposits fund the originations,” Siemiatkowski said.

Klarna said in March that its Klarna Card reached the milestone of 5 million customers as consumers seek more control over their money. The card draws from customers’ funds for day-to-day spending and gives them the option to spread the cost of specific purchases on things like travel or major appliances, without having to deal with long-term debt obligations.

“[Consumers are] voting with their wallets and looking for the control and flexibility in a single card,” Klarna Chief Marketing Officer David Sandström said at the time in a press release. “Unlike traditional banks, Klarna gives people the choice to pay now, or pay over time: the right tool for each situation.”