Buy now, pay later outfit Klarna is to open a savings account for German consumers using online deposit marketplace Raisin.
In a first for Klarna, and available exclusively to Raisin’s customers in Germany, the new products include an overnight money account with a competitive interest rate of 0.35%.
The Klarna deposit products, operating from overnight to terms of up to 48 months, are accessible through a completely online process via Raisin WeltSparen.
Robert Bueninck, managing director DACH Klarna: “We’re on an exciting journey from being purely a payment provider to a comprehensive shopping ecosystem. At the same time, we are consistently expanding our banking offerings. Through our cooperation, we’re enabling our customers to easily build up long-term assets.”
Klarna is one of a host of fintech startups looking to expand beyond its original remit by offering high-yield savings accounts to customers. Earlier this week, Affirm, the fintech startup led by PayPal co-founder Max Levchin that lets online merchants advance credit to consumers at the point of sale, announced the introduction of a savings account offering a 1.3% APY, no minimums or fees, and optional auto-deposit.
The move comes as the buy now-pay later marketplace becomes increasingly crowded. Just today, Verrency introduced a payment installment option for banks as part of it payments API platform, while in Bogota, POS-financing startup Addi raised $15 million to export its service across Latin America.
Curve, the fintech startup that lets users consolidate all of their bank cards through a single app, is another firm looking to enter the consumer credit space. The company is planning to take on the likes of Klarna following beta tests of 'Curve Credit', which lets users pay back in installments on purchases made through the Curve app. The company has today opened a waitlist for the system, which will debut later this year.