Klarna, a global digital bank and flexible payments provider, has initiated the rollout of two new offerings, Klarna Balance and Klarna Card, in the UK market. These products are designed to address everyday spending needs, marking an expansion of Klarna’s presence in retail banking services for UK consumers.
Klarna Balance allows customers to store e-money within a Klarna ‘account,’ enabling them to add and withdraw funds, and receive refunds and cashback rewards for certain Klarna purchases. The Klarna Card functions as a flexible debit-first card, with purchases defaulting to debit. Consumers can apply for a spending plan for purchases when a credit option is suitable. The card operates on Visa Flexible Credential technology and is accepted globally at over 150 million Visa merchant locations, both online and in-store.
David Sandström, Chief Marketing Officer of Klarna, stated, “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.”
This UK product launch follows Klarna’s e-money authorization from the Financial Conduct Authority (FCA) in July of this year. The Klarna Card and Balance products have seen successful roll-outs worldwide. Notably, a U.
S. pilot launch in July resulted in one million sign-ups for the Klarna Card within 11 weeks, and Klarna’s card portfolio now accounts for 10% of its global transactions. Furthermore, the Klarna Balance product in other markets contributed to a rise in global deposits from $9.5 billion in December 2024 to $14 billion in June 2025.
Key features of Klarna Balance include its function as a digital wallet for e-money storage, the ability to add funds from a payment card, transfer funds to a connected card, and use the balance to settle Klarna payments. The Klarna Card offers flexible payment options, allowing users to pay upfront in debit mode or activate Klarna payment features such as Pay in 3, along with integrated app functionalities like budgeting and spending reminders. All Klarna Card sign-ups automatically receive a free Klarna Balance account. The card also features no foreign exchange fees for purchases made in foreign currencies or abroad.
Debit functionality for the Klarna Card is available to all customers, while credit is granted on a case-by-case basis following a credit check. Both the card and balance account are issued instantly, with no credit check required at signup; a credit check is performed when a consumer applies for a payment plan. The Klarna Card is currently rolling out in the UK, Denmark, Germany, Norway, and Poland, and is already available in Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden, and the US.
Visa Flexible Credential is a network capability that enables multiple payment experiences—including debit, prepaid, credit, installments, and rewards—to be accessed from a single card.
