:max_bytes(150000):strip_icc()/GettyImages-2151491488-01fd9e9ae3a0407180528cd598d383f6.jpg "Klarna Debuts New Banking Features With Potential IPO Looming")
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Key Takeaways
- Klarna introduced a savings account feature as well as cashback rewards for purchases made in its app.
- The buy now, pay later (BNPL) company is jockeying for position with its rivals in the fintech sector, as well as with traditional banks.
- Klarna reportedly is close to tapping Goldman Sachs to lead an IPO next year.
Klarna is rolling out new savings and spending account features as the Swedish fintech firm tries to take a “bite out of banks’ lunch.”
The AI-driven buy now, pay later (BNPL) company now allows users to store money within their Klarna account, which customers can transfer funds into from their bank. The firm is also getting into the cashback business by introducing rewards for shopping done within the Klarna app.
Affirm, Afterpay Also Making Their Way Into Banking
Fintech companies wriggling their way into the banking sector has become increasingly common.
Earlier this summer, Affirm Holdings (AFRM) said its BNPL loans would be available for Apple’s (AAPL) Apple Pay users this fall. Afterpay, for its part, is currently beta testing short-term consumer loans with the Cash App Card, according to a ModernRetail report. Both Afterpay and Cash App are owned by the fintech company Block (SQ), formerly called Square.
In Klarna’s case, the new features come as the company reportedly is considering an initial public offering (IPO). The company is leaning toward choosing Goldman Sachs Group (GS) to lead its IPO next year, according to a Bloomberg report Wednesday.