Klarna has expanded its debit-first card to users across Europe following a successful US launch in July, where 685,000 Americans signed up within two months.

The Klarna Card, powered by Visa Flexible Credential, is debit by default, enabling users to pay instantly with their own funds at more than 150 million Visa merchant locations worldwide, both in-store and online.

Within the Klarna app, cardholders can choose to pay upfront or activate flexible repayment options, including Pay in 3, Pay Later, or longer-term financing for larger purchases, subject to approval. This hybrid approach allows consumers to cover everyday essentials as well as bigger one-off expenses, blending the familiarity of a debit card with Klarna’s established buy now, pay later features.

Sebastian Siemiatkowski, Klarna’s co-founder and chief executive, said: “When I was a teenager working in retail, the checkout terminals gave consumers a simple choice: debit or credit. Over time, that choice was taken away and consumers had less control over when to use debit or credit. Our new Klarna Card brings that choice back, giving consumers control over their money again.”

The Klarna Card is available in Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, and Sweden, with plans to expand to Denmark, Germany, Norway, and Poland soon. Additional features include a free Klarna Balance account for cash storage, instant card issuance without a credit check for debit functionality, and no foreign exchange fees on overseas purchases. A credit check is only performed when a customer opts to convert a purchase into a financed transaction.

Klarna’s card-based products now account for around 10 per cent of its global payment volume, reflecting the company’s evolution from a buy now, pay later specialist to a broader payments provider. The European rollout is part of Klarna’s strategy to compete directly with traditional banks and card issuers by offering consumers greater flexibility and control.

Separately, Klarna has confirmed plans to list on the New York Stock Exchange, with an initial public offering expected to price shares between $35 and $37, valuing the company at up to $14 billion.

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