Klarna Trials Debit Card Powered By Visa in US, Plans European Launch Later This Year

Sweden-based fintech firm Klarna has begun testing its latest debit card offering in the United States in partnership with Visa, designed to provide consumers with greater payment flexibility.

The Klarna Card enables users to either pay upfront or opt for no-interest installment payments, available for purchases online and in stores at more than 150 million retailers that accept Visa. 

The initiative expands beyond Klarna’s traditional "buy now, pay later" services, aiming to offer consumers a financial tool that integrates spending, saving, and borrowing capabilities.

The card, issued through WebBank, is currently in its early testing stage, with a full-scale launch expected across the U.S. and Europe later in the year.

The card features an FDIC-insured wallet, enabling users to hold funds, make instant deposits, and send transfers. It also connects with Klarna’s Pay in 4 and Pay Later services.

“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 Chief Marketing Officer at Klarna, David Sandström.

When the Klarna Card officially launches, users will have the option to select from three membership levels, one at no cost and two premium tiers offering enhanced cashback rewards and retailer discounts. 

All Klarna users will have access to debit features, while eligibility for credit functionality will depend on an individual credit evaluation.

The initiative comes as Klarna is working to rebrand itself as a broader digital banking platform ahead of its expected IPO. Klarna has postponed its IPO plans due to market instability triggered by President Donald Trump’s new tariff policy. 

The company had filed to go public on the NYSE in March but paused plans amid the sell-off and economic uncertainty. Klarna flagged global trade risks, including tariffs, as potential threats to its business.

Visa stock has gained over 15% in 2025 and over 35% in the last 12 months.

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