The news: Klarna launched Money Story in the US, an app feature that gives users insights into their spending habits in 2022 and offers ways to improve spending and budgeting in 2023, per a press release.
A closer look: Money Story resembles social media stories—popularized by platforms like Snapchat and Instagram. It breaks down users’ spending habits—segmented by month, shopping category, and retailer.
Why it matters: Almost 80% of buy now, pay later (BNPL) users cited some form of financial hardship as a reason for using the payment method in the last 12 months, according to our US Buy Now, Pay Later Feature Demand Report 2022.
The report found that the most in-demand financial wellness features were viewing all possible fees at checkout and receiving monthly spending statements. But financial wellness is one area where Klarna lacks: It only offers two out of the category’s seven emerging features examined in the report—access to a free in-app budgeting tool and an upfront breakdown of how loans are approved.
It may become more important for BNPL providers to offer financial wellness products as economic headwinds pick up, which may put some consumers at higher risk of missing payments.
The opportunity: Money Story can benefit Klarna in three key ways.
Related Content: Check out our Klarna spotlight report to learn about Klarna’s most in-demand features and areas where it can improve.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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