Swedish FinTech company Klarna officially launched two new products for everyday spending in the United Kingdom — a digital wallet and a debit card.
Klarna, one of the world’s largest FinTech providers, announced the U.K. rollout of the Klarna Card debit card and Klarna Balance digital wallet, stepping up competition with traditional banks. The new products allow users to store and spend electronic money, earn cashback, and manage their finances with greater flexibility.
Klarna Balance enables users to hold electronic money in their account, top up their balance using bank cards, transfer funds, and earn rewards for purchases made through Klarna. Cardholders can use their balance to pay for goods and services and receive cashback on eligible transactions.
The Klarna Card operates on a “debit-first” principle: all payments are processed as debit by default, though users can link a credit plan if needed. The card is powered by Visa Flexible Credential technology and is accepted at more than 150 million Visa merchants worldwide, both online and offline.
Key advantages of the Klarna Card include no foreign transaction fees, instant activation without a credit check, and a free Klarna Balance account for all cardholders. A credit check is only required when applying for a credit line.
The Klarna Card and Klarna Balance are now available to users in the United Kingdom, with gradual rollout underway in Denmark, Germany, Norway, and Poland. Previously, the service was launched in Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden, and the United States.
According to the press release, the Klarna debit card was launched in the U.S. in July, and within 11 weeks the number of users exceeded 1 million, accounting for 10% of all global Klarna transactions. In other countries, the company’s deposit products are also showing steady growth — total deposits increased from $9.5 billion in December 2024 to $14 billion in June 2025.
Klarna’s Chief Marketing Officer David Sandström noted that the company aims to restore consumer trust in banking services, which has been eroded by traditional banks. The new Klarna Card combines the simplicity of a debit card with the flexibility of a credit tool in an intuitive digital solution.
Digital financial services are rapidly gaining popularity in the U.K., while traditional banks are losing ground — the combined market share of the six largest banks fell from 85% to 71% between 2020 and 2024.
