Klarna has launched a digital wallet and flexible debit card in the UK after receiving e-money authorisation from the Financial Conduct Authority (FCA) in July.

The company, best known for its Buy Now, Pay Later (BNPL) services, said the move marks a significant step in its plans to “disrupt retail banking” and become an everyday spending option for UK consumers.

The Swedish FinTech's new digital wallet “Klarna balance” enables customers to store e-money in an account where they can add and withdraw funds, receive refunds and cashback rewards for certain purchases.

Klarna Card is a flexible debit-first card powered by Visa Flexible Credential. The card is accepted at over 150 million Visa merchant locations worldwide, online and in-store.

“Traditional banks have taken the trust out of banking," said David Sandström, chief marketing officer of Klarna. "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.”

The launch follows the launch of the card and balance products in other markets worldwide.

Klarna's new debit card is currently rolling out in the UK, Denmark, Germany, Norway and Poland, and already available in Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden, and the US.

Following the US pilot launch in July this year, the Klarna Card hit one million sign-ups in 11 weeks.

Klarna expanded its debit-first card to users across Europe last month following the successful US launch.

Klarna’s card portfolio already drives 10 per cent of global transactions, while its balance product in other markets has helped drive up global deposits from $9.5 billion in December 2024 to $14 billion in June 2025.

The business currently serves 93 million active consumers around the world and over 675,000 merchants.

It offers a range of services including flexible payments, delivery tracking and spending insights.

In August, Klarna announced a multi-year forward flow agreement with Nelnet, a US-based financial services and investment firm, to support Klarna’s continued expansion of its Pay in 4 products in the US.

The agreement enables the BNPL firm to sell newly originated, short-term, interest-free Pay in 4 receivables to Nelnet on a rolling basis.

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