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.
“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 CEO 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 $1.13 trillion, 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.
Key features of the new Klarna Card include:
No monthly or annual fee*
Pay anywhere Visa is accepted, including in-store, online, and internationally
Zero foreign transaction fees when shopping abroad
Earn up to 10% cashback when you use the card in the Klarna app
Physical and virtual Visa card compatible with Google and Apple Pay
Flexible payment options with no revolving credit, including:
Pay monthly statement in full with zero interest
Pay for transactions early with zero interest
Move a purchase due date to the next month’s statement (interest applicable)*
Pay over time on eligible purchases in 3 or 6 monthly payments (interest applicable)*
Full spending overview in the Klarna app for financial budgeting
Seamless integration with the Klarna app enabling consumers to find the best deals and integrates fully with Klarna’s AI Assistant
*Price and product features subject to change
The Klarna Card is subject to eligibility based on the following criteria:
Users need to be at least 18 years of age
US resident
Have previously purchased with Klarna and repaid on time at least once
Pass the credit assessment, based on internal and external credit checks
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 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.