Letting users pay directly from their bank accounts minimizes their reliance on cards, which could mean less volume and revenues for issuers.

The tool makes it easier for desktop shoppers to use Klarna’s service and take advantage of rewards—but it could raise some flags.

Usage of buy now, pay later (BNPL) services has soared across generations in the US, especially among Gen Z.

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More US consumers than ever say they aren’t spending on the holidays: The expected rebound in holiday shopping hides the fact that many consumers are keeping their wallets closed, while others are turning to buy now, pay later plans for gifts they can’t afford.

The BNPL giant will also bring the Klarna Card stateside—both payment features are already available in Europe.

Just 7% of US adults are very likely to use buy now, pay later (BNPL) services this holiday season.

Consumers were most comfortable when they felt their financial institution would protect their assets. Incumbents could have an outsized influence over consumers’ adoption of open banking.

The app lets users shop at any online retailer, redeem promotions, and access product and budgeting tools—turning Klarna into a one-stop shopping hub.

Strong growth in the key metric for the first nine months of 2021 could foreshadow success in the incumbent bank’s other targeted plays and keep it competitive with neobanks.

Zip’s preholiday shopping event clocked stellar numbers, but diversification and increased credit card use might challenge BNPL growth.

Klarna implemented a number of changes to make its UK business more transparent and limit consumer BNPL risks.

Partnering with Billie lets Klarna’s European merchants offer B2B financing—helping it move early into a growing segment instead of vying for consumers.

The BNPL provider will bring its solution to Simon Properties and FreedomPay merchants as consumers head back to stores for the holidays.

The UK-based neobank is looking to do buy now, pay later (BNPL) trials in Europe next year—and it could quickly find a following within its large customer base.

Both companies introduced customer-facing solutions and merchant tools and expanded partnerships to make their products more attractive as economic tailwinds die down and competition heats up.

Although BNPL is flourishing, intensifying competition might push providers into new global markets and sectors outside of traditional retail to sustain their growth.

Fintechs raised $30.79 billion, accounting for $1 out of every $5 raised for startups across industries—and newly raised, multibillion-dollar fintech funds will keep up the momentum in the coming quarters.

The top 3 buy now, pay later platforms

HERO lets online customers connect with in-store retail associates to ask product questions and seek other support—which could help Klarna strengthen its merchant relationships.