Klarna launching its own bank accounts in Germany is a big challenge for challenger banks! Watch today’s episode of ‘All about Payments’ to see @marek’s breakdown of the news ��️ ��

�� In this breakdown we cover��
↳ Klarna’s announcement to launch bank accounts in Germany
↳The benefits Klarna offers to its bank account users
↳ The digital banking landscape in Germany
↳ Financial budgeting apps
↳ Our take on how this impacts other challenger banks
Do you think the entrance of Klarna will obstruct the growth of other challenger banks? *Comment your thoughts��️��*
#klarna #fintech #bnpl

Transcript
Title: How Klarna went from being BNPL solution to challenging retail banks

Buy now, pay later pioneer Klarna is launching its own banking accounts in Germany. Klarna was already a bank as the holder of a Swedish banking license, but without fully playing the “Bank” role in Europe. This is a remarkable step and certainly a big challenge for challenger banks! Last week, an impressive 72% of you decided that we should cover this exciting announcement, and here we are!

But before we start, if you are interested in following the latest news in fintech, make sure to check out our new Fintech Magazine. Let’s continue!

Good morning everyone,

The pandemic and the shift to a digital environment have created a perfect ground for digital innovation as we have seen a number of startups flourish in 2020. Particularly, challenger banks have been the subject of many success stories.

Klarna is now entering the challenger banks landscape also through the launch of consumer bank accounts in Germany. The feature will essentially allow Klarna users to have further control over their finances. The announcement has been well received by the public as many expressed they would switch from their current bank account as soon as it is possible.

Title screen; What will Klarna offer with its banking service and what makes it special?

A Klarna bank account will come with a Visa debit card which can also be connected to both Google Pay and Apple Pay. The initial offering will exclusively be made available to a limited number of Klarna’s most loyal consumers as a beta test before gradually offering it to all Klarna users in Germany over the next few months.

With the launch Klarna promises to offer:
A Klarna bank card which is free of charge and allows the customer to instantly make the decision whether they want to pay now, later or through installments.
This card will be able to be accepted in both physical and online stores who accept VISA payments.
Smart Budgeting and spending categories. So essentially, many features similar to what neobanks offer.
This news is exciting not only because Klarna is already a well established & highly popular payment solution, but also because they are directly competing with German retail banks who have only recently started implementing modern digital banking services. We also can’t help but wonder how Klarna’s move will affect the currently leading challenger banks.

Title screen: But how does Klarna’s bank app differ from any other budgeting app?
A bank account with Klarna allows the customer to keep track, manage and predict their spendings. While these functions are provided by many budgeting apps, the biggest difference remains that with a typical budgeting app, the user often has to manually enter their transactions.
A unique feature by Klarna is the Item level detail and visibility of individual prices of the purchased items. Something that other banks cannot give because they are not integrated at the checkout and only get the aggregate value of the purchase, merchant account and time of purchase. Bottomline, Klarna is an APM, checkout-solution and now pretty much also an omnichannel retail bank.
Title screen: The main takeaway
What is particularly interesting is that we are seeing a trend where major BNPL solution providers are going beyond lending through providing deposit products also. AfterPay too announced launching more financial services in 2020. It looks like the initial offering of BNPL solutions for eCommerce was just an entry product to establish a footprint. With the Klarna card, consumers will now be able to also carry out POS transactions, through Card Present or Card Not Present payments with their phone via debit, credit or installments.
It looks like Klarna is heading towards creating their own financial super-apps like Google is trying to do.
Would you be willing to switch from your current bank account to Klarna or do you think that the benefits are not worth the switch? Share your thoughts in the comments

Thanks all for watching see you again next week cheers goodbye.

https://www.businessinsider.com/klarna-digital-banking-push-should-put-neobanks-on-high-alert-2021-2?international=true &r=US &IR=T

Klarna continues to grow globally. We are now present in 20 markets, reaching over 100M consumers and partnering with 250K+ retail partners. This scale enables us to significantly contribute to a more sustainable future and be a force for good in society and our planet. We do this with no judgment. Rather we strive to play a significant role in providing consumers information they seek. The commitments we made to date are the building blocks to the journey of driving positive change in the next few years.

With this post, we want to inform you about our achievements from last year up until today.

Our key achievements:
��We launched Give One which is our promise to donate 1% of all funding rounds to help combat climate change and the loss of biodiversity, and we want our consumers and retail partners to join our efforts.
��We make annual financial contributions to high-impact climate projects through our Climate Transformation Fund. In 2021, we invested more than $1.05m in 11 projects that catalyze carbon removal, decarbonization and climate advocacy and portrayed the projects in our climate report.
��We launched a CO2 emissions tracker for our 90 million consumers to track their emissions based on their shopping through Klarna. Consumers can then donate to a Carbon Transformation Fund to take action on those emissions.
��We launched Sustainable Collections in collaboration with Good On You, the world’s leading sustainability rating platform for fashion brands and provided consumers with curated access to environmentally and ethically friendly brands.
��We provide consumers with tips on how to build a more sustainable wardrobe and how to shop and sell pre-owned fashion.
Special thanks to our partners Milkywire and Doconomy!
Read more here https://lnkd.in/eyB-r9YH

Klarna Chief Executive Officer Sebastian Siemiatkowski discusses fintech, buy now, pay later and the Russia-Ukraine war on “Bloomberg Surveillance: Early Edition.”

#squintv #klarna #payment

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