Klarna Opens Waiting List for Klarna Card to U.S. Customers
Over the past few years, “buy now, pay later” (BNPL) services have gained popularity as an alternative to credit cards. Yet, one BNPL FinTech is set to launch its own credit card. Klarna has announced the impending arrival of the Klarna Card in the United States from issuer WebBank.
When cardholders use the Klana Card, their purchases will automatically enroll in the platform’s “Pay in 4” program — which follows a bi-weekly repayment plan. This physical card will enable customers to use Klarna in-store anywhere Visa is accepted whereas the service was mostly online only. Additionally, the card will be connected to the service’s Vibe loyalty program, allowing users to redeem their “vibes” for rewards from Amazon, Walmart, Starbucks, Target, and several other brands.
Currently, Klarna customers can join the Klarna Card waitlist by opening the latest version of the Klarna app and tapping the option. Alternatively, new and returning users can visit the Klarna Card site. Those who do join the waitlist will be informed of the card’s availability via email, allowing them to apply.
Announcing the card’s upcoming launch stateside, Karna Co-Founder and CEO Sebastian Siemiatkowski said, “U.S. consumers are paying $120 billion in interest payments and fees on credit cards alone every year. The Klarna Card provides consumers with a real alternative to high-cost credit cards and lets them take the power of ‘Pay in 4’ everywhere they go.”
Siemiatkowski went on to share some of the product’s history so far, stating, “Following successful launches in Sweden, Germany and most recently the U.K., where the waitlist drew over 450,000 consumers within days, we know how strong the demand is for fair and transparent alternatives to conventional card offerings, and can’t wait to bring the Klarna Card to millions of U.S. consumers.”
The advent of the Klarna Card comes as the company — along with its fellow BNPL providers — continues to see increased adoption. In turn, last year, Klarna raised a whopping $639 million round at a valuation of $45.6 billion. However, “buy now, pay later” has come under fire from regulators lately, with further scrutiny expected as the sector grows.
On the one hand, creating a physical credit card for Klarna could be beneficial for consumers who use the service as it could help them build credit (assuming they pay on time). Ironically, however, credit bureaus have already been working to incorporate BNPL plans into their credit reports. Nevertheless, customers who enjoy Klarna but have wanted to use the service on brick-and-mortar purchases might be interested in the card. Other than that, while the card is an intriguing expansion of Klarna, it might not be that appealing for most consumers.