NEW YORK — Klarna is expanding its U.S. consumer banking offerings with the launch of FDIC-insured savings accounts, marking the latest step in the company’s effort to broaden its financial services platform beyond payments and buy now, pay later products.
According to a statement from Klarna, the new savings accounts are available through the Klarna app and offer no minimum deposit requirement, no monthly fees, direct deposit capabilities and annual percentage yields beginning above 3%.
Deposits are provided and held by WebBank, a member of the Federal Deposit Insurance Corp., while Klarna serves as the platform through which consumers access the accounts.
The launch builds on Klarna’s existing savings business in Europe, where the company said consumers have deposited more than $12.3 billion across 11 markets.
Just Minutes to Open
Klarna said the accounts can be opened within minutes through its app and include tools designed to encourage saving, including automatic round-ups, scheduled transfers and savings goals.
“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,” Sebastian Siemiatkowski, Klarna’s co-founder and chief executive officer, said in a statement. “Klarna is already where millions of Americans manage their everyday spending. Now it’s where they save too.”
The savings accounts are integrated into Klarna’s financial hub within its mobile app and complement the company’s existing Klarna balance and Klarna Card products.
Intro Yield of 3.28%
According to the company, introductory yields begin at 3.28% APY, although rates are subject to change. Klarna said enhanced yields are available to members on balances up to $50,000, with amounts above that level earning a base interest rate.
Klarna emphasized that while deposits are eligible for FDIC insurance through WebBank, Klarna itself is not an FDIC-insured bank.
The company said the launch is intended to give consumers a single platform for managing spending, payments and savings.
Klarna reported having more than 119 million active users globally and processing approximately 3.4 million transactions per day through its payments and commerce network.
