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Klarna has launched a pilot of its new payment card in the US, targeting consumers reluctant to use traditional credit products with a debit-first design that offers optional flexible payment features.
The Swedish buy-now-pay-later company’s “Klarna Card” combines immediate debit functionality with the ability to activate credit features through its mobile application, powered by Visa’s Flexible Credential platform.
At an exclusive press lunch at Money 20/20 Europe 2025 in Amsterdam, Mathieu Altwegg, SVP, Head of Product and Solutions for Europe at Visa, said the company has observed that “customers are ready for a future with a single card” that accommodates various payment preferences, from immediate settlement to flexible payment terms, all attached to multiple funding options.
With over 5 million consumers already on the waitlist, the pilot represents Klarna’s push to become an everyday spending partner in the US market. The company plans to gather user feedback during the trial phase before a broader US rollout and European expansion later this year.
“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 Sandstrom, Klarna’s chief marketing officer, at the Money 20/20 Europe 2025 press lunch. “They want simplicity, flexibility, and transparency – all in one place.”
Unlike traditional credit cards (which can lead consumers to incur debt and interest charges automatically), the Klarna Card allows users to pay immediately by default or actively choose interest-free payment options over time. Users must deliberately activate Klarna’s payment features, such as the Pay in 4 and Pay Later options, to ensure standard purchases remain debit transactions.
The card comes with an FDIC-insured wallet that enables real-time transfers and deposits, integrating directly with Klarna’s existing payment ecosystem.
This approach appeals to the company’s 93 million global active users who have demonstrated a preference for actively choosing when to defer payments rather than automatically accessing credit.
The Visa technology enables a single card to support multiple payment experiences – including debit, prepaid, credit, installments and rewards – from one account. This addresses growing consumer demand for payment flexibility without the commitment of traditional revolving credit arrangements.
Consumers, particularly younger demographics, increasingly seek alternatives to conventional credit cards due to concerns about automatic credit exposure and debt accumulation. This informs Klarna’s decision to default to debit while preserving flexible payment options.
