Buy now, pay later firms like Klarna and Block's Afterpay could be about to face tougher rules in the U.K.Financial technology firm Klarna is pushing deeper into banking with its own checking account-like product and a cashback offering that rewards users for shopping via its app.
"These new products make it easier for customers to manage multiple scheduled payments, helping our customers use Klarna for more frequent purchases and driving loyalty," Sebastian Siemiatkowski, Klarna's CEO and founder, told CNBC.
Siemiatkowski said that Klarna wants to "support all consumers with their everyday spending," adding that the products will allow people to "earn money while they shop and manage it in a Klarna account."
The two new products, which are being rolled out in 12 markets including the U.S. and across Europe, will show up in the Klarna app as "balance" and "cashback."
Klarna balance lets users store money in a bank-like personal account, which they can then use to make instant purchases and pay off their buy now, pay later loans.
Persons:
Block's, —, Sebastian Siemiatkowski, Siemiatkowski, Klarna
Organizations:
Financial, CNBC, U.S
Locations:
Europe