Klarna has announced the launch of its debit card and account-style digital wallet for customers and partners in the region of the UK.
Following this announcement, the launch represents an important step forward in Klarna’s strategy to disrupt retail banking, as well as to become an everyday spending partner to US-based customers and individuals.
The two new products include Klarna Balance, which was developed in order to allow clients to store e-money in a Klarna ‘account’ where they can add and withdraw funds, receive refunds, and cashback rewards for certain Klarna purchases, as well as the Klarna Card, which was designed as a flexible debit-first product that allows purchases to be debited by default. In addition, through the use of this tool, consumers will have the possibility to apply for a spending plan for purchases when credit makes sense. The card is powered by Visa Flexible Credential and accepted at several Visa merchant locations worldwide, online, and in-store.
More information on Klarna’s debit card and account-style digital wallet launch
According to the official press release, Klarna Balance will act as a digital wallet where customers can store their e-money, add funds from a payment card, transfer funds to a connected card, and use their Klarna balance to settle Klarna payments.
Furthermore, included in the Klarna Card features are the flexible payment options (customers will have the possibility to pay up front in debit mode, or activate Klarna payment options and features, such as Pay in 3, as well as offering all the features in the Klarna app, including budgets, track spending reminders, among others), free Klarna balance account (all users who sign up for Klarna Card will automatically get a free Klarna balance account where they can store funds), no foreign exchange fees (Klarna Card customers are set to be enabled to use their card to make purchases in foreign currencies, or abroad, with no foreign exchange fees), as well as being available to all Klarna customers (debit functionality will be available to all, which credit will be granted on a case-by-case basis following a credit check), and instant availability (the card and balance account are expected to be issued instantly, with no credit check being required at signup, while a credit check will be carried out when a consumer applies for a payment plan).
The Klarna Card is currently rolling out in the UK, Denmark, Germany, Norway, and Poland, and is already available in the regions of Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden, and the US.
