Global: Klarna to Launch Digital Wallet and Debit Card in the UK

Global buy-now-pay-later (BNPL) provider Klarna is set to expand its footprint in the United Kingdom’s financial services sector with the introduction of a digital wallet and Visa-backed debit card, marking a bold move into traditional retail banking territory.

The new offerings — Klarna Balance and the Klarna Card — are designed to challenge conventional banking models by enhancing the everyday payment experience for consumers. The digital wallet will allow users to store funds, make deposits and withdrawals, and earn cashback rewards on selected purchases made via Klarna’s platform.

The Klarna Card, already available across parts of Europe following its initial launch in the United States, will enable UK users to make direct payments using their Klarna balance or linked accounts, offering a seamless and flexible spending experience.

Commenting on the launch, Klarna’s Chief Marketing Officer, David Sandstrom, said:

“Traditional banks have taken the trust out of banking. We’re here to change that.”

The rollout follows Klarna’s recent authorisation from the UK’s Financial Conduct Authority (FCA) in July, allowing the fintech firm to provide electronic money (e-money) services — a key regulatory milestone that strengthens its position within the UK’s digital finance ecosystem.

By entering the retail banking space, Klarna aims to bridge the gap between BNPL services and everyday consumer banking, underscoring the broader trend of fintech firms evolving into full-fledged financial service providers.