Klarna super app strategy to provide full visibility of shopping and banking transactions all at one place

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Klarna is focusing on creating a super app which would enable users to track their spending and upcoming payments as well as banking transactions, and plans to unveil budgeting tools in the coming months. The super app will provide access to all shopping and banking features at one place offering a summary of finances, tracking of purchases and deliveries, access to store sites, setting up price-drop notifications, and full visibility of banking transactions. The company is turning its mobile app into a banking app in Germany.

As a first step, the company announced the launch of bank accounts for limited number of German users with plans to expand the offering in the coming months. Also, the company allows users to access the banking app to open a bank account and get a Visa debit card.

The company intends to bundle shopping and banking in one super app and enable customers to shop and conduct banking transactions with same ease. To make payments via digital wallets, the bank accounts introduced can be added to both Google Pay and Apple Pay.

Prior to this, the company launched savings accounts in Germany in partnership with Raisin, a fintech player, June 2020. This was Klarna’s first step towards digital banking. To manage bank accounts, Klarna has its own banking system and does not depend on banking-as-a-service partner. The company now directly contends with digital banks, including N26 and Vivid Money, in Germany, with its entry into digital banking.

Initially, the company began as a payment method for e-commerce website allowing users to make payments in multiple installments. Later moved into offering savings accounts and bank accounts, turning into a full-fledged digital bank.

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