The Klarna Card is debit-by-default, so purchases are settled immediately from the user’s funds, while the benefits of Klarna’s flexible repayment options still remain.
Klarna, a fintech company focusing on flexible payments, is launching its debit-first card in the EU countries after the product’s successful July debut in the U.S.
Powered by Visa Flexible Credential, the Klarna Card gives consumers clearer spending control and lowers reliance on interest-bearing credit. Its immediate settlement, plus real-time notifications and balance visibility, make it harder to overspend.
As users’ own funds are the default spending source, if consumers want credit, they must actively opt into Klarna’s pay-later or installment options at checkout, which makes borrowing a deliberate choice rather than the automatic option. Although that might add a little friction, many shoppers are willing to sacrifice the speed for greater control over their finances. Since its launch in July, over 685,000 American customers have opted for a debit-first Klarna Card.
At the same time, using Klarna’s debit product doesn’t negate the convenience of flexible payment options. Customers can still switch to alternative payment plans like Pay in 3, Pay Later, or longer-term financing for larger purchases without needing a new card.
“When I was a teenager working in retail, the checkout terminals gave consumers a simple choice: debit or credit. Over time, that choice was taken away and consumers had less control over when to use debit or credit. Our new Klarna Card brings that choice back, giving consumers control over their money again.”
Sebastian Siemiatkowski, Co-founder and CEO of Klarna
Leveraging Visa Flexible Credential technology gives Klarna broad merchant acceptance, faster authorizations, and tokenized security, which reduces fraud risk and checkout friction. For merchants, this combination typically improves approval rates, lowers declines, and facilitates the path to higher conversion and average order value.
The initial rollout is taking place across Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, and Sweden, with the plan to expand to more markets, including Denmark, Germany, Norway, and Poland, soon.
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