Klarna trials debit card in US, plans Europe launch later this year
FILE PHOTO: A sign is pictured at the entrance of Klarna's headquarters in Stockholm, Sweden on May 25, 2022. REUTERS/Supantha Mukherjee/File Photo
STOCKHOLM :Swedish fintech Klarna on Tuesday said on Monday it is doing a pilot launch of a new debit card in the United States as the buy now, pay later pioneer seeks to compete more directly with traditional banks.
With a partnership with Visa, Klarna will allow consumers to pay immediately or choose interest-free options to pay over time for both online and in-store purchases.
Klarna in April paused its plans for a U.S. initial public offering for the second time in the last few years as President Donald Trump's sweeping tariffs rattled global markets.
The company, which has over 100 million global active users, is currently trialling the debit card in the U.S. before a broader rollout in the U.S. and Europe later this year.
Banks are the primary institutions in the U.S. to issue debit cards where a customer can use their own funds to purchase goods instead of going into debt as offered by credit cards.
As Klarna doesn't have a banking license in the U.S., the debit card and the balance account will be issued by Utah-based WebBank.
The physical card will come in aubergine, black and bright green colours with a choice between one free, and two paid tiers for different discounts and cashback rates.
