Klarna, the global digital bank and flexible payments provider, has begun rolling out two new products tapping into retail banks’ core business: everyday spending. This launch marks a significant step forward in Klarna’s mission to disrupt retail banking and become an every day spending partner to the UK’s consumers.

• Klarna balance allows customers to store e-money in a Klarna ‘account’ where they can add and withdraw funds, receive refunds and cashback rewards for certain Klarna purchases.
• Klarna Card is a flexible debit-first card; purchases are debit by default, but consumers can apply for a spending plan for purchases when credit makes sense. The card is powered by Visa Flexible Credential and accepted at over 150 million Visa merchant locations worldwide, online and in-store.

David Sandström, Chief Marketing Officer of Klarna says: “Traditional banks have taken the trust out of banking. We’re here to change that and our new Klarna Card puts you in control: the simplicity of debit with the flexibility of credit, all wrapped in a beautifully simple experience.”

The UK product launches follow Klarna’s e-money authorisation from the FCA in July this year and the successful roll-out of the card and balance products worldwide. Following the U.S. pilot launch in July this year, the Klarna Card hit one million sign-ups in just 11 weeks and Klarna’s card portfolio already drives 10% of global transactions, while Klarna’s balance product in other markets has helped drive up global deposits from $9.5bn in December 2024 to $14bn in June 2025.

Notes to editors:

Klarna balance features:

• Klarna balance acts as a digital wallet where customers can store their e-money, add funds from payment card, transfer funds to a connected card and use their Klarna balance to settle Klarna payments.

Klarna card features:

• Flexible payment options: Pay up front in debit mode, or activate Klarna payment options and features, such as Pay in 3, while also offering all the great features in the Klarna app including budgets, track spending reminders, among others.
• Free Klarna balance account: everyone who signs up for Klarna Card will automatically get a free Klarna balance account where they can store funds.
• No foreign exchange fees: Klarna Card customers can use their card to make purchases in foreign currencies, or abroad, with no foreign exchange fees.
• Available to all Klarna customers: Debit functionality is available to all; credit is granted on a case-by-case basis following a credit check.
• Instant availability: The card and balance account are issued instantly, with no credit check required at signup. A credit check is carried out when a consumer applies for a payment plan.
• Klarna Card availability: The Klarna Card is currently rolling out in the UK, Denmark, Germany, Norway and Poland, and already available in Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden, and the US.
• Klarna Card is powered by Visa’s Flexible Credential: Visa Flexible Credential is a network capability that allows multiple payment experiences - such as debit, prepaid, credit, installments and rewards - to be accessed from a single card.

Category: Perspectives

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