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Klarna Launches Debit Card to Move Beyond BNPL

By Wesley Grant
June 3, 2025
in Analysts Coverage, Buy Now, Pay Later, Debit, Emerging Payments
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klarna debit card

As part of its continued transformation into a full-fledged financial institution, Klarna is launching a Visa debit card for U.S. users.

The Klarna Card will be piloted with a select group of consumers ahead of a nationwide rollout and a planned European Union launch later this year. The debit card is linked to an FDIC-insured account that functions effectively as a bank account.

The Klarna Card will be facilitated by Visa Flexible Credential, which allows users to toggle between services such as buy now, pay later, credit, and debit using a single card.

“Klarna and other payment service providers are collaborating to diversify their product offerings and provide consumers with more choice and flexibility,” said Elisa Tavilla, Director of Debit Payments at Javelin Strategy & Research. “For example, Affirm and FIS recently partnered to integrate BNPL options into debit card programs. Consumers can convert purchases into installments directly through their existing debit cards within their digital banking or mobile app.”

“This offers shoppers the option of payment deferral with debit cards that credit cards routinely provide,” she said. “By partnering with Visa and leveraging Visa Flexible Credential, Klarna is enabling shoppers to choose their preferred payment option through a seamless and flexible digital experience.” 

Making Waves Overseas

Expanding its services beyond BNPL has been a top priority for Klarna, as the company added balances and cashback rewards last year. It has already obtained a full banking license in the European Union, but has yet to secure one in the U.S.

This hasn’t stopped the company from making waves overseas. Klarna has forged a series of partnerships as it works toward an initial public offering in the United States. Though the IPO has been shelved due to macroeconomic concerns, deals with eBay and Walmart should go a long way toward helping Klarna expand its footprint.

Changing the Perception

While most of these deals have hinged on BNPL, Klarna’s growing U.S. presence should position the company to offer a broader range of financial services products in the future.

“We want Americans to start to associate us with not only buy now, pay later, but the PayPal wallet type of experience that we have, and also the neobank offering that we offer,” Sebastian Siemiatkowski, CEO of Klarna, told CNBC. “We are basically a neobank to a large degree, but people associate us still strongly with buy now, pay later.”

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Tags: AffirmBNPLBuy Now Pay LaterDebitDebit CardsKlarnaVisa

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