Klarna Card, powered by Visa Flexible Credential, is debit by default, letting users pay instantly with their own money, while also offering flexible options.
Klarna issues major update to millions of customers who use debit cards
Klarna has issued a huge update to millions of customers as it launches a flexible debit card. The Klarna Card, powered by Visa Flexible Credential, is debit by default, letting users pay instantly with their own money, while also offering flexible options.
Within the Klarna app, consumers can choose: Pay in 3, Pay Later, or longer-term financing for larger purchases, subject to approval.
“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 Sandström, Chief Marketing Officer at Klarna.
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“They want simplicity, flexibility, and transparency – all in one place. That’s exactly what has made Klarna payment methods so popular online, and now that same experience is coming to a physical card.
“The Klarna Card is the future of everyday banking – creating smart payments, to empower smarter shoppers.”
“Millions of people around the world have embraced the choice and control offered by Visa’s Flexible Credential, and we’re delighted to extend this to even more U.S. consumers, as well as bringing it to Europe for the first time,” added Mathieu Altwegg, SVP Product and Solutions, for Visa in Europe.
“This is a pioneering example of a future where consumers will only need one card in order to have access to their preferred ways to pay, no matter where they are, or what they’re purchasing.”
But Scott Dixon, consumer and motoring disputes expert, said the card could be “potentially risky for cash-strapped consumers”.
“On the face of it, it gives people more control by allowing them to pay upfront or spread the cost when it suits”.
The expert warned flexibility can “quickly spiral out of control if consumers don’t fully understand when they are dipping into credit and risk incurring interest or fees.”
Adam French, head of news at Moneyfactscompare.co.uk, told the Sun: “The card is ‘debit-first’ by default, which means shoppers will be spending their own money unless they expressly switch to a pay later option.
“However, therein lies the risk as pay later and instalment options can too-easily tempt some shoppers into overspending, especially at a time when inflation is close to 4% and cost of living pressures are mounting.”