Klarna, the global digital bank and flexible payments provider, has begun rolling out two new products that tap into the core of retail banking, everyday spending.

The launch marks a major step in Klarna’s mission to disrupt traditional retail banking and become a trusted everyday spending partner for consumers in the UK.

The first product, Klarna Balance, allows customers to store e-money in a Klarna account, enabling them to add and withdraw funds, receive refunds, and earn cashback rewards on certain Klarna purchases.

The second, the Klarna Card, is a flexible debit-first payment card where purchases are made by debit by default, though consumers can apply for a spending plan when credit makes sense.

Powered by Visa Flexible Credential, the card is accepted at more than 150 million Visa merchant locations worldwide, both online and in-store.

David Sandström, Chief Marketing Officer of Klarna, said:

“Traditional banks have taken the trust out of banking. 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 UK launch follows Klarna’s receipt of e-money authorisation from the Financial Conduct Authority (FCA) in July this year and builds on the successful rollout of its card and balance products in other markets.

Following the product’s debut in the US in July, the Klarna Card reached one million sign-ups within just 11 weeks.

Klarna’s card portfolio now accounts for 10% of its global transactions, while its balance product in other regions has helped increase global deposits from US$9.5 billion in December 2024 to US$14 billion in June 2025.

Featured image credit: Klarna