Klarna, the global digital bank and flexible payments provider, has started rolling out two new products focused on everyday spending, marking a strategic move into core retail banking services.
The launches underline Klarna’s ambition to become a daily spending partner for consumers in the UK, extending its footprint beyond buy-now-pay-later solutions.
The first product, Klarna balance, functions as a digital wallet where users can store e-money, add and withdraw funds, and receive refunds and cashback rewards for selected Klarna purchases.
This account aims to make everyday money management simpler, giving consumers a flexible, centralised way to handle their funds.
Klarna Card is a debit-first card designed with flexibility in mind. Purchases are processed as debit by default, but users can opt for a spending plan where credit is more appropriate. Powered by Visa Flexible Credential, the card is accepted at over 150 million Visa merchant locations globally, both online and in-store.
David Sandström, Chief Marketing Officer of Klarna, said, “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 launch follows Klarna’s e-money authorisation from the FCA in July 2025 and builds on previous successful roll-outs worldwide. After launching in the U.S. in July, Klarna Card reached one million sign-ups in just 11 weeks. Klarna’s card portfolio already accounts for 10% of the company’s global transactions, while the balance product has helped drive global deposits from $9.5bn in December 2024 to $14bn in June 2025.
Klarna balance allows customers to store funds in a Klarna account, add money from a linked card, transfer funds to a connected card, and settle Klarna payments. The product is designed to give users greater control over their spending while keeping funds accessible for everyday use.
The Klarna Card offers a range of flexible payment options. Customers can pay upfront in debit mode or activate Klarna payment features such as Pay in 3. Additional benefits include budget tracking, spending reminders, and other features integrated within the Klarna app. All new Klarna Card sign-ups automatically receive a free Klarna balance account.
The card also charges no foreign exchange fees, making it suitable for international purchases. Debit functionality is available to all customers, with credit offered on a case-by-case basis after a credit check. Both the card and balance account are issued instantly, though a credit check is performed when applying for a payment plan.
Currently, Klarna Card is rolling out in the UK, Denmark, Germany, Norway, and Poland, while it is already available in Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden, and the U.S.
It leverages Visa’s Flexible Credential, enabling multiple payment experiences—debit, credit, prepaid, instalments, and rewards—through a single card.
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