Challenger bank Lunar takes on Klarna with pay later product

Cloud-based Nordic challenger bank Lunar has introduced a ‘pay later’ function for its customers, taking on buy-now-pay-later-giant Klarna, AltFi reports.

As of today, customers will be able to split all transactions into four instalments retroactively or postpone a payment for up to 30 days in the Lunar app, which is not dissimilar from Curve’s ‘Go Back in Time’ function.

The new feature will only be available to customers who deposit more than €270 into their account each month and includes all payments, both online and in-store and marks the first digital bank to release its own ‘pay later’ product, with other digital banks favouring more traditional credit options.

Read more: AltFi