Feature Stories North America Paytech Trending

Klarna Improves US Offering With New Klarna Card and Expedia Group Partnership

Klarna, the AI powered global payments network and shopping assistant, has upgraded its services in the US as it opens a waitlist for a new Klarna card and partners with Expedia Group to expand its services to travellers.

The partnership will enable millions of new travellers to book flights and strays using the interest-free ‘Pay Now or Pay in 4’ options. The rollout of Klarna to Expedia Group’s largest market, with 37 million customers, comes after its successful launches in the UK, Germany, Sweden, and Finland.

The US travel and tourism market is expected to generate nearly $200billion in 2024 according to Statista. This partnership comes at a time when consumers are seeking more value and flexibility in planning their trips as the travel industry recovers from the woes of the COVID-19 pandemic.

Erin Jaeger, head of North America at Klarna said: “We are incredibly excited to join forces with Expedia Group to provide more flexible payment solutions that cater to the evolving needs of modern travellers. By enabling US consumers to Pay Now or Pay Later with Klarna, we are not only making travel more financially accessible, but also enhancing the booking experience with our seamless payment process. It’s a win-win for travellers seeking both adventure and affordability.”

Clayton Nelson, vice president, strategic partnerships and affiliates, Expedia Group
Clayton Nelson, vice president, strategic partnerships and affiliates, Expedia Group

“We’re thrilled to expand our collaboration with Klarna, providing travellers with increased flexibility in booking their ideal getaway. This collaboration underscores our dedication to advancing and enriching the traveller journey with innovative technologies, enabling our partners to offer exceptional experiences to their customers,” said Clayton Nelson, vice president, strategic partnerships and affiliates, Expedia Group.

Launching the Klarna Card in the US

The partnership follows the announcement of Klarna opening the waitlist for its new Klarna Card for US consumers. Issued by WebBank, the Klarna Card 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.

Sebastian Siemiatkowski, CEO, Klarna
Sebastian Siemiatkowski, co-founder and CEO, Klarna

“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.”

A sustainable payment method to avoid debt

In 2023 credit card debt hit a new record high of $1.13trillion, 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.

When integrating the Card with the Klarna 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 per cent  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

A recent survey by Klarna and Harris Poll reveals 41 per cent of American credit card users are revolving month-to-month, with approximately one quarter of credit card users (23 per cent) 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 per cent of Klarna BNPL users paid their bills early, 65 per cent paid on time, and only four per cent incurred late fees in 2023. Additionally, Klarna’s global default rate stands at less than one per cent. This is significantly lower than the delinquency rates associated with credit cards, and 99 per cent of payments are repaid in full and on time.


Related posts

Crypto-currency Investors Plan to Buy More as financial professionals expect valuations to rise

Manisha Patel

DIFC and Mastercard Partner to Drive Fintech Innovation in the Middle East

The Fintech Times

This Week in Fintech: TFT Bi-Weekly News Roundup 14/01

Claire Woffenden