Klarna Expands Beyond "Buy Now, Pay Later" with New Visa Debit Card
Klarna, the Swedish fintech company famous for its "buy now, pay later" (BNPL) services, is setting its sights on broader financial offerings with the launch of its new Visa debit card. This move marks a significant shift as the company aims to reshape its image from a BNPL provider to a more comprehensive banking option.
What is the Klarna Card?
Klarna has introduced the Klarna Card in a pilot program for select U.S. customers, with plans for a full launch across the country soon. This card isn’t just a typical debit card; it’s designed to work like a hybrid financial tool. Customers can manage funds, make withdrawals, and even access various payment options, including Klarna’s BNPL services, all from the same card.
The Klarna Card is powered by Visa Flexible Credential, enabling users to toggle between using their debit account and Klarna’s BNPL features, such as “Pay in 4” or “Pay in 30 Days.” This flexibility allows for a unique payment experience that combines the immediacy of debit with the convenience of short-term credit.
Competing in the Consumer Banking Space
As it launches its debit card, Klarna enters a competitive landscape dominated by large banks like JPMorgan Chase and Bank of America, along with rising fintech players like Chime. Klarna’s strategy aims to attract a broader range of customers looking for modern banking solutions.
CEO Sebastian Siemiatkowski emphasized this vision, stating that they want consumers to view Klarna as a neobank—a digital-only bank that provides financial services through technology rather than traditional branches. Unlike in the European Union, where Klarna holds a full banking license, its U.S. operations offer FDIC-insured accounts through a partnership with WebBank, ensuring customer deposits are protected.
Why This Matters for Consumers
For consumers, the Klarna Card represents a significant evolution in how they can manage their finances. It’s not just about making purchases; it allows for a more integrated banking experience. The card can hold FDIC-insured deposits, offering safety and the potential for better money management.
Practical Takeaways:
- Flexibility: Users can switch between using their debit balance and BNPL options easily.
- Safety: With FDIC insurance through WebBank, your deposits are secured.
- Simplicity: One card for multiple functionalities reduces the need for juggling different financial tools.
As Klarna prepares for a potential initial public offering (IPO), its push to diversify beyond BNPL services will likely reshape how consumers view fintech. By offering a more holistic banking experience, Klarna may well change the game for those looking for new ways to manage their money effectively.

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Bio: Priya specializes in making complex financial and tech topics easy to digest, with experience in fintech and consumer reviews.