Klarna takes on banks with its own debit card
From CNBC: 2025-06-03 07:04:00
Klarna, known for “buy now, pay later” services, is launching a Visa debit card to expand beyond short-term credit products. The Klarna Card will pilot in the U.S. before launching in Europe, part of an effort to shift away from just BNPL offerings and position as a neobank.
The new Klarna Card will come with an account for FDIC-insured deposits and withdrawals, akin to mainstream bank checking accounts. Powered by Visa Flexible Credential, users can access multiple funding sources like debit, credit, and BNPL. It aims to compete in the crowded U.S. consumer banking market against giants like JPMorgan Chase and Bank of America.
Despite not holding its own U.S. bank license, Klarna partners with WebBank to offer FDIC-insured accounts. With a full banking license in the EU, Klarna aims to provide an all-encompassing banking experience, not just BNPL services. The move reflects the company’s evolution towards becoming a neobank with diverse financial offerings.