The news: Klarna debuted high-yield savings accounts in the US, per a press release.

Klarna Savings has a base APY of 3.28%. Users can unlock “APY Boosts” by subscribing to higher membership tiers: 

• Plus members earn 3.38%.
• Premium members earn 3.48%.
• Max members earn 3.78%.

Klarna Savings are FDIC-insured accounts with no minimum deposits and no monthly fees. The accounts are provided and held by WebBank. 

Klarna users can also access features like round-ups, scheduled transfers, and savings goals.

How we got here: Klarna has been pushing deeper into financial services beyond buy now, pay later (BNPL). 

• It launched traditional banking services for German users in 2021, per a press release.
• Klarna rolled out Klarna Balance, a quasi-bank account, for UK customers in October.
• And it debuted the Klarna Card, a BNPL-enabled debit card for US users, last June.

Why this matters: Klarna is making its app stickier. Customers can now use the app for holistic financial services, like Cash App’s all-in-one stack. 

This could drive Klarna customers to engage with its app more. As the BNPL industry enters a new stage of maturity, payment value is slowing, per our forecast. Future BNPL growth is more likely to depend on highly engaged users than on new acquisitions. 

Implications for issuers: Banks are on notice as fintech payment providers move into their core territory. Fifty-eight percent of banks ranked nonbank payment companies as their No. 1 threat, per an American Banker survey. 

To combat fintechs, issuers should draw on their consumer trust and credit-building opportunities for consumers on the path to car and home purchases. Banks can retain consumers through a fuller financial stack, including wealth management and retirement services that make leaving too much of an inconvenience.