Swedish BNPL giant Klarna has added a new financial planning tool that gives users a simple summary of their spending habits.
Klarna said Wednesday (January 25th) that the new “Money Story” feature will be available on the Klarna app in the United States, United Kingdom, Germany and Sweden, and will include an animation format similar to that seen on social media. Press release emailed to PYMNTS.
“Money Story provides our fast-growing network of more than 150 million consumers with useful insights into their spending habits with Klarna and encourages them to develop smart spending habits for 2023,” Kristina Elkhazin, President of Klarna North America, told PYMNTS via email.
The launch of the features follows the various shopping and financial tools added to the app last year and also coincides with Financial Wellness Month, an event aimed at encouraging consumers to scrutinize their budgets.
As PYMNTS reported on Jan. 3, consumers can celebrate the month using data from digital wallets and platforms to get a better idea of their spending and the actions they need to take to meet their financial goals.
There is an urgent need for such data and education, as financial literacy is already low in America and is declining further.
This lack of financial literacy has real-life consequences as consumers grapple with record inflation forcing them to flex their dollars and reorganize their household budgets.
According to “Credit Union Tracker®,” a PYMNTS and PSCU collaboration, more than half of Americans earning less than $50,000 a year and 36% of those earning more than $100,000 a year now live on a paycheck.
According to the press release, Klarna’s Money Story gamifies money management by visualizing spending habits, presenting animated quiz questions and providing data from all spending with Klarna.
“For the first time, Klarna’s consumers will get a comprehensive overview of their annual Klarna spending,” said Felix Würtenberger, Klarna’s head of cards and banking. “We hope to inspire users to take control of their finances by gamifying the often tedious and daunting chore of money management.”
“Money Story is the latest extension of Klarna’s growing suite of shopping and financial tools designed to save consumers time and money while helping them control their finances and make more informed decisions,” Elkhazin told PYMNTS.
The new Money Story joins many other shopping and financial tools that Klarna has launched in the last 12 months. These include a search tool that compares prices from thousands of retailers, a donation feature that highlights vetted nonprofits, and a dashboard with budgeting tools and spending insights in the Klarna app, Elkhazin said.
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