Visa Partners with Klarna to Launch the Klarna Card, Combining Debit Flexibility and Pay Later Options

Visa Partners with Klarna to Launch the Klarna Card, Combining Debit Flexibility and Pay Later Options

(IN BRIEF) Visa has teamed up with Klarna to launch the Klarna Card, a flexible debit product that allows consumers to pay immediately or later at over 150 million Visa-accepting merchants worldwide. The card features Visa’s Flexible Credential, offering users the ability to switch between debit and flexible payment options. Currently in a trial phase in the U.S., the Klarna Card will roll out later this year in both the U.S. and Europe, helping Klarna establish itself as a modern neobank for digital-first consumers.

(PRESS RELEASE) LONDON, 4-Jun-2025 — /EuropaWire/ — Visa, a global leader in digital payments, has partnered with Klarna to launch the Klarna Card, an innovative debit product that offers flexible payment options powered by Visa Flexible Credential and issued by WebBank. The Klarna Card enables consumers to choose between paying immediately or spreading payments over time, either online or in-store, across more than 150 million Visa-accepting merchants worldwide. This new solution combines the convenience of a debit card with the flexibility of a pay-later option, providing consumers with a smarter, more flexible tool for managing their spending.

Currently in a pilot phase in the U.S., the Klarna Card is gathering feedback to refine its features before a broader rollout in the U.S. and Europe later this year. The phased approach allows Klarna to optimize the product and ensure it delivers a seamless and efficient experience for users.

With over 5 million people already on the waitlist, the Klarna Card represents a significant step toward Klarna becoming a go-to payment solution for everyday spending. The card also comes with an FDIC-insured wallet, offering users the ability to store money, make real-time transfers, and deposits, while integrating Klarna’s Pay in 4 and Pay Later options into the card’s functionality.

David Sandström, Chief Marketing Officer at Klarna, said, “Consumers today want simplicity, flexibility, and transparency, whether they’re paying up front with debit or spreading payments over time. Klarna’s goal is to bring that flexibility to physical cards, just as we’ve done for online payments.”

The Klarna Card is an integral part of Klarna’s evolution into a modern global neobank, combining spending, saving, and borrowing tools in one intuitive platform. It provides a transparent, tech-driven alternative to traditional bank products and aims to meet the needs of digital-first consumers.

Mathieu Altwegg, SVP Product and Solutions at Visa, commented, “Visa’s Flexible Credential gives consumers the power to choose how they want to pay. With Klarna Card, we are expanding this flexibility to millions of U.S. consumers and introducing it to Europe for the first time. This partnership exemplifies the future of payments, where consumers only need one card to access all of their preferred ways to pay.”

Klarna Card Details:

• Flexible Payment Options: Users can choose to pay immediately in debit mode or activate Klarna’s Pay in 4 and Pay Later options.
• Upgrade Tiers: Customers can choose between a free tier or two paid tiers, offering additional benefits like merchant discounts and enhanced cashback rates. The card is available in three colors: aubergine, black, and bright green.
• Availability: The Klarna Card is currently being tested in the U.S., with plans for a full rollout in both the U.S. and Europe later this year.

The Klarna Card is issued by WebBank, with the Klarna balance account provided by WebBank, Member FDIC.

Notes to editors:

• Flexible payment options: Pay up front in debit mode, or activate Klarna payment options and features, such as Pay in 4 and Pay Later, while also offering all the great features in the Klarna app including budgets, track spending reminders, among others.
• Option to upgrade Tiers: Once available, customers will be able to choose between one free, or two paid tiers which include merchant discounts and improved cashback rates. The card will come in three colors: aubergine, black and bright green.
• Available to all Klarna customers: Debit functionality is available to all; credit is granted on a case-by-case basis following a credit check.
• Klarna Card availability: The Klarna Card is currently in testing in the U.S. as work is done with early users to evolve the final product. This test phase marks an important milestone in building financial solutions that meet real consumer needs. It will be available to all consumers in the U.S. in the coming months, with rollout in Europe expected to follow.
• About Visa 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.

About Klarna

Klarna is on a mission to be available everywhere for everything. With over 100 million global active Klarna users and 2.9 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter — online, in-store and through Apple Pay in the U.S., UK and Canada. More than 724,000 retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. For more information, visit Klarna.com.

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

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SOURCE: Visa