By: 22 April 2024

The waitlist is now open if you wish to sign up to the Swedish credit provider's new offer

Klarna to launch its credit card in the US

Klarna, the AI powered global payments network and shopping assistant, today announced it has opened its waitlist for the new Klarna Card to all US consumers. The Klarna Card, issued by WebBank, offers flexible payment options in both physical stores and online, empowering consumers to make purchases anywhere Visa is accepted; and with no foreign transaction fees while abroad. On the heels of the Klarna Card’s success in Europe, the new offering follows Klarna’s track record of providing sustainable and flexible payment options everywhere, and is a welcome alternative to high-cost credit cards that have hidden fees.

The move follows Klarna’s launch of its subscription service in the US.

“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,” said Sebastian Siemiatkowski, co-Founder and chief executive officer of Klarna. “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.”

In 2023 credit card debt hit a new record high of $1.13trn, according to the Federal Reserve Bank of New York. The Klarna Card offers a healthier and more sustainable option with payment flexibility, including an option to pay a monthly statement in full at zero interest, pay earlier than the statement due date at zero interest, or to pay over time or move a purchase to the next statement with interest. This variety of choice grants consumers the power to budget and manage credit according to their needs, promoting responsible spending without the pitfalls of traditional credit cards.

The Klarna Card seamlessly integrates into Klarna’s best-in-class shopping experience with the Klarna app. When integrating the Card with the 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 reveals 41% of American credit card users are revolving month-to-month, with approximately one quarter of credit card users (23%) 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. In comparison Klarna’s data shows 31% of Klarna buy now pay later (BNPL) users paid their bills early, 65% paid on time, and only 4% incurred late fees in 2023. Additionally, Klarna’s global default rate stands at less than 1%, significantly lower than the delinquency rates associated with credit cards, and 99% of payments are repaid in full and on time.

Image: Klarna

Robert Welbourn
Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.