Klarna's new way to boost customer loyalty

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February 26, 2022

Klarna brings Pay Now and rewards program to new markets to bolster customer loyalty

Sweden-based buy now, pay later (BNPL) firm Klarna launched its rewards program in nine countries, including the UK and Canada, per a press release. Klarna also brought its Pay Now feature to the same countries, plus Australia.

Klarna's rewards program, which it launched in Australia and the US in 2020, lets customers earn points when they make on-time payments. Points can be redeemed at brands in the Klarna app. $269 billion will likely come from banking and capital markets.

Expanding Pay Now could help Klarna mitigate financial concerns related to BNPL and making its rewards program more widely available could help increase Klarna's customer engagement.

But Klarna isn't alone in beefing up app features to help bolster customer and merchant loyalty. Australia-based Zip recently launched a feature that lets merchants showcase their latest deals in the app's homescreen.

Insider Intelligence's Adriana Nunez has the full story.

BRIEFING HIGHLIGHTS

Afterpay and Sezzle look to healthcare payments for BNPL greenfield

Two major buy now, pay later (BNPL) providers signed healthcare-related deals.

Amex tightens Delta relationship by bringing BNPL offering to its checkout

American Express made its card-based buy now, pay later (BNPL) feature, Plan It, available at checkout on Delta Air Lines' website, per a press release.

SoFi's Technisys deal moves it closer to a 'one-stop shop' for banking services

US neobank SoFi has agreed to acquire Technisys, a cloud-based core-banking provider. The tie-up is valued at around $1.1 billion and is slated to close in Q2 2022.

How banks handle defrauded customers can make or break account retention

Over one in four US consumers are willing to change their banks if they are not pleased with how they handle fraud cases, per a survey from FICO.

BofA's digital-mortgage flip shows incumbents a path for adapting

Bank of America reported that the vast majority of its mortgage initiations were made digitally in 2021.

Banks avoiding 'new normal' of nixed overdrafts belong to a small and shrinking club

Citigroup said it will eliminate its overdraft fees by this summer, along with charges on overdraft-protection services and returned items.

Olo's new payment solution helps restaurants optimize digital ordering

US-based Olo, a software as a service (SaaS) restaurant commerce provider, launched Olo Pay, a solution that helps streamline online payments for restaurant customers, per a press release.

RESEARCH IN FOCUS

Insider Intelligence's Payments Trends to Watch in 2022

Payments are set to break physical and digital borders in 2022, connecting the world in more ways than ever. Innovations will lower barriers for payments across countries and continents, and the rise of super apps will bring all of consumers' financial needs—including payments—into a single place. Meanwhile, innovations in lending will extend credit to once-inaccessible segments. This report covers how state-sponsored central bank digital currencies (CBDCs) will impact the payments landscape, who is best positioned to gain from the rise of buy now, pay later (BNPL), what the rise of super apps mean for payments titans, and why payments providers are attracted to sub-Saharan Africa.

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The Banking CMO Report

Today's banking CMOs are redefining their role as digital becomes the default banking channel for customers. With CMOs being responsible for customer retention as well as acquisition, they are seeking to exert influence over more stages of the customer journey. In this report, we synthesize exclusive interviews with 10 CMOs at some of the largest and most innovative banks, credit unions, and neobanks in the US and Canada. We provide insights into how CMOs define their roles and responsibilities; how trends are shaping their strategic priorities; and how a changing consumer and competitive environment is changing the CMO role more fundamentally.

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US Generation Z Financial Behaviors

After living through the one-two punch of the Great Recession and COVID-19 pandemic, Gen Zers are plagued with financial anxiety. As a result, they've adopted a cautious and practical approach to saving, investing, and money management. They are skeptical of traditional financial institutions, they prefer digital and mobile financial tools, and they seek investments that reflect their values and goals. This report is an overview of Gen Z's attitudes and behaviors as they relate to banking, investing, and personal finance.

Get the full report →