Klarna Takes on JPMorgan, BofA With Foray Into Bank Accounts (1)

Klarna Bank ABis adding retail-banking services in the US and across much of Europe, expanding beyond its signature buy-now, pay-later offering as the fintech prepares for an initial public offering.

Customers of the financial-technology company in 12 countries will newly have the option to add money from their bank account to a digital wallet, called Klarna balance, where they can get cash-back rewards for shopping in the Klarna app or receive refunds from returned items, according to a statement Thursday.

In Europe, where Stockholm-based Klarna already has a banking license and is overseen by Swedish regulators, the fintech will ...