Klarna, the $14.6 billion fintech startup known for its “buy now, pay later” installment loans, is expanding its offerings and better competing with traditional banks by piloting its first Visa debit card.
Klarna announced on Tuesday that it’s trialing the Klarna Card, a debit card with traditional features, including storing money and making deposits. But unlike a regular bank-issued debit card, there’s a key difference: at the point of sale, users can choose to pay in full or finance a purchase through an installment plan, such as the “Klarna Pay in 4,” an interest-free loan paid in four monthly installments.
Related: Klarna’s CEO Used an AI Clone of Himself to Report Quarterly Earnings. Here’s Why.
Debit functionality is available to all Klarna Card users by default, while installment loans are given on a case-by-case basis after a credit check. Klarna will tack on a $1 to $3 charge for every transaction using an installment plan, the company told CNET.
“We consistently hear from consumers that they want the freedom to choose how and when to pay — whether that’s paying now with debit or spreading the cost over time,” said David Sandström, chief marketing officer at Klarna, in a press release. “They want simplicity, flexibility, and transparency — all in one place. That’s exactly what has made Klarna payment methods so popular online, and now that same experience is coming to a physical card.”
According to the release, five million customers are already on the waitlist for the Klarna Card, which is currently undergoing a trial phase in the U.S., with broader availability expected in the U.S. and Europe later this year. The card is available in three colors: aubergine, black, and green.
Once fully rolled out, the card will offer a free tier and two paid tiers called “Member” and “Plus,” which will cost $3.49 and $7.99 a month, respectively. The paid tiers will unlock cashback rewards and merchant discounts.
Related: ‘Not Necessarily Super Excited About This’: Klarna’s CEO Says AI Can Take Over All Jobs, Including His Own
Klarna, which has over 100 million global active users according to its first-quarter 2025 results, is attempting to broaden its offerings ahead of a possible initial public offering. Klarna CEO Sebastian Siemiatkowski told CNBC’s “The Exchange” last month that Klarna was “basically a neobank” and that he wanted Americans to associate the company with a broader set of features beyond buy now, pay later.
Klarna is the biggest “Pay in 4” loan company in the U.S., driving 33% of Klarna’s revenue growth in Q1, with revenue rising 15% year-over-year to hit $701 million.
The company filed for a U.S. IPO in March that would have valued the company at around $15 billion, but paused its plans in April due to market uncertainty. The initial public offering prospectus showed that the company brought in $2.8 billion in revenue in 2024.
Klarna was founded in 2005 and has enabled buy-now, pay-later loans to go mainstream over the past two decades. In March, Klarna became Walmart’s exclusive buy now, pay later provider.
Related: Robinhood Is Offering a Credit Card for the First Time — and It’s Available in 10-Karat Gold
Klarna, the $14.6 billion fintech startup known for its “buy now, pay later” installment loans, is expanding its offerings and better competing with traditional banks by piloting its first Visa debit card.
Klarna announced on Tuesday that it’s trialing the Klarna Card, a debit card with traditional features, including storing money and making deposits. But unlike a regular bank-issued debit card, there’s a key difference: at the point of sale, users can choose to pay in full or finance a purchase through an installment plan, such as the “Klarna Pay in 4,” an interest-free loan paid in four monthly installments.
Related: Klarna’s CEO Used an AI Clone of Himself to Report Quarterly Earnings. Here’s Why.
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