Klarna brings debit-first card to Europe

The card is based on Visa Flexible Credential and is a debit card by default. Users can pay immediately with their own credit or activate flexible payment methods via the Klarna app. They can choose from three installment payments to "pay later" and financing for larger purchases.

Customers used to be able to choose between debit and credit at the checkout - this choice has disappeared. We're bringing it back with the Klarna debit card.

Sebastian Siemiatkowski, CEO Klarna

Europe-wide launch

The card is being rolled out in Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain and Sweden. Germany, Denmark, Norway and Poland are soon to follow. The card is accepted at over 150 million Visa merchants worldwide, both online and in brick-and-mortar stores.

Advantages for users

• No foreign currency fees for foreign payments
• Free Klarna Balance account included
• Immediate availability of card and account, without credit check upon registration
• Flexible use: debit, installments, pay later

Attack on classic credit cards

With the combination of debit-first and flexible Klarna options, the company is challenging the traditional credit card model. Today, card-based products already account for 10% of Klarna's global payment volume. With the European rollout, this share is likely to increase significantly

Market launch in Germany as an endurance test

However, the Klarna debit card must first prove its worth, especially when it is launched in Germany. This is because many consumers are still familiar with the problem that cards are simply not accepted in retail outlets, hotels or car rental companies. If Klarna can impress here with stable performance and broad acceptance, the debit-first card could quickly become a great success, especially among the young, digitally savvy target group.