Klarna Directly Enter Irish Savings Market

Just to add my thoughts on the Klarna offering ... while waiting for my Advanzia account to be set up, I set up a Klarna account. The Klarna account opening process is super easy. Their app is very easy to use. Simple interface. 2.30% instant access without fees, and no hassle account opening, and your money in a AAA country Sweden, with no local tax deductions. Might appeal to some.
 
Last edited:
I had a Klarna demand account via raisin (as already a raisin customer so only a couple of clicks)
The rate has dropped consistently and with the latest drop I cleaned it out bar a small sum for a term deposit.
Very quick withdrawl (same day) and set up times.
 
I found this WSJ video explaining how BNPL (buy now pay later lenders) like Klarna work interesting - https://www.wsj.com/video/series/the-economics-of/buy-now-pay-later-wants-to-kill-credit-cards-but-theyre-becoming-similar/DFB0A798-40AD-408B-84F4-0F1FD1E49107?mod=hp_lista_pos1

The BNPL industry is booming. 90% of Klarna's revenue comes from retailers (who are charged more than for debit/credit card payments). The consumer pays zero percent interest typically via a pay-in-four payments model if they pay the instalments on time. Albeit, higher retail payment costs probably get reflected in higher retail prices.

Really popular with younger consumers. From speaking to an Irish retailer recently, the percentage of transactions from Klarna is substantial.

The increased default amount mentioned above is proportionally lower than the increased number of customers.

Meanwhile, just opened a term deposit with Klarna for the first time. Really easy to do in their app. Very simple. Accrued interest on the term deposit is displayed too.
 
Last edited:
You must log in or register to reply here.
Menu
Log in
Register