Klarna's new credit card is a 'healthier alternative' to others, says CEO Sebastian Siemiatkowski

And and no annual fee, no application fee, you can use it anywhere Visa is accepted and you get some cash back things. Now do I have to have been a buy now pay later customer of Klarna or some other kind of customer of Klarna to apply for and get this card or not. So over 30 million Americans have used Klarna now which is pretty amazing. It’s our largest market. You know we’ve been profitable here for for five construction quarters. And so, yes, I mean the main way people are going to find out and use Klana and use the car that you’re referring to is obviously through the fact that they have tried us at, you know the more than fifty of the top 100 US retailers, Macy’s, Sephora, Uber, AB and B, all these merchants that you know offer Klana today. So that’s going to be the, the normal way in which customers are going to engage with Klana initially. And then we offer them this opportunity to use Klana everywhere. Does being A A a user of buy now, pay later services help one’s credit rating or hurt it just being just being being a a part of it currently? There’s actually not real reporting yet to the credit bureaus. There’s been a little bit of discussion in the industry what should happen about this in in in the former. I mean I find US system is very odd for me as a European that you have to borrow a lot of money to get better credit rating. It’s a little bit odd for us coming from Europe where it’s the opposite by not borrowing you get better credit rating. So you know we’re trying to adopt ourselves to that US reality, but obviously overtime we want to make sure that this product also contributes to a better credit scoring buy now, pay later explain it to me because I I feel I I worry a little bit that people think OK I can buy something here and I pay later and I if I do that I am not going to accrue interest. But boy a lot of people think they are going to be able to make that pay later payment but can’t. Well no, that’s true. I mean obviously in a market where credit cards are so prevalent as the US, right. I think some of us may remember back in days when you used to swipe your card, you would push one for debit 2 for credit. That is very, very critical because that actually led to people borrowing less, building less balances on the credit cards and basically used to because they use debit, because they use debit because they use debit occasionally and occasionally credit which is something clone offers, we offer both debit payments and and credit payments. And then when you use credit we don’t do revolving, it’s interest free especially if you do like the standard paying for installments that we do online and then only would you like to do longer term financing, we may offer products on a financing cost. So, so it’s very but it’s fixed installments that’s very, very critical that you have a you know a fixed time period to pay it off. So what we see is our losses are about 3040% below credit card industry standards, which to me is like really the evidence that I need to show that people, our users are more responsible credit users and they have better outcomes, they have less depth. They, I mean the average outstanding balance with us would be, you know 100 dollars, $200 by maybe $5000 on a credit card or more, right. So the product is simply better, but you have to sacrifice revenue for that. We have to sacrifice revenue. It is a less profitable product than you know a subprime credit card set up to maximize people’s depth and and the revolving and the balance that they build up. But long term we see there is a a huge group of consumers in the US looking for a healthier alternative. They want to have credit occasionally but they want to be in charge. You want to be in control of it. You have a very interesting company. I mean there is that consumer facing part of it that we’re talking about right here. But there is also your big part of your business is payments processing as well and and and that’s kind of behind the scenes but but an extremely important part of your business. The, the natural question, you’re a private company now, How long will you be a private company and do you and entertain thoughts of going public and if so, how soon? That’s a very accurate description. So I think about ourselves actually as a third party network, you have Visa, Moscow, the full party networks, you have Amex, PayPal and Clown as a third party network, we have the direct relationship with the consumers. We work with partners like Stripe and Aggie and many others on the merchant side and it allows us to build better consumer services faster. Like I actually think the hidden secret, I’ll share with you that nobody knows about Clown, I think is really interesting. We have SKU level data on every transaction. So when people look at the transactions, they can see exactly what they purchase, not just the amount give some much richer consumer experience is very valuable for the consumer. So we can really differentiate in a very different way and we’re building what is maybe you know one of the few new emerging payments networks that have that have happened in the last decades. And and from an IPO perspective, I’ve asked that answer that question. If you don’t, you know it’s not unlikely that it’s going to happen fairly, fairly soon. We, you know, but we haven’t commented more in detail than that. Well, I I thought you had forgotten my question about the IPO there. I was gonna have to remind you, but you remembered and you gave an answer. Thank you very much. We.