Swedish giant BNPL Klarna has added another new financial planning tool that gives users a simple summary of their spending habits.
The new “Money Story” feature will be available on the Klarna app in the US, UK, Germany and Sweden and will include an animated format similar to that seen on social media, Klarna said in a statement on Wednesday (January 25). press release emailed to PYMNTS.
“Money Story provides our rapidly growing network of more than 150 million consumers with actionable insights into their spending habits with Klarna, encouraging them to cultivate smart spending habits by 2023,” North America head Kristina Elkhazin told PYMNTS. by e-mail.
The feature launch follows several financial and shopping tools that have been added to the app over the past year and also coincides with Financial Wellness Month, an event aimed at encouraging consumers to review their budgets.
As PYMNTS reported on January 3, consumers can celebrate the month by using data from wallets and digital platforms to better understand their spending and the actions they need to take to reach their financial goals.
There is an urgent need for this type of data and education, as financial literacy in America is already low and declining further.
This lack of financial literacy has real-life implications as consumers face record inflation that forces them to stretch their dollars and struggle to rework their household budgets.
More than half of Americans earning less than $50,000 a year now live paycheck to paycheck, as do 36% of those earning more than $100,000 a year, according to the “Credit Union Tracker®,” a collaboration between PYMNTS and PSCU .
Klarna’s Money Story gamifies money management by visualizing spending habits, providing animated quizzes and delivering data on all spending with Klarna, according to the press release.
“For Klarna consumers, this will be the first time they get an overview of their annual spending at Klarna,” said Felix Würtenberger, Head of Cards and Banking at Klarna. “By playing up the often boring and daunting task of money management, we hope to inspire users to take control of their finances.”
“Money Story is the latest extension of Klarna’s growing set of financial and shopping tools designed to save consumers time and money, while helping them take control of their finances and make more informed decisions,” Elkhazin told PYMNTS .
The new Money Story joins other financial and shopping tools that Klarna has launched in the past 12 months. These include a search tool that compares prices from thousands of retailers, a donation feature that highlights vetted nonprofits, and a dashboard in the Klarna app that includes budgeting tools and spending information, Elkhazin said.