Overview

• Klarna is piloting its new debit card in the U.S. with FDIC-insured accounts issued by Utah-based WebBank.
• The Visa Flexible Credential feature lets users switch seamlessly between traditional debit payments and interest-free installment options like Pay in 4.
• After the U.S. test phase, Klarna plans a nationwide rollout followed by an expansion into European markets later this year.
• The card launch marks a strategic move to broaden Klarna’s offerings beyond buy now, pay later and compete with established banks and neobanks.
• Competitors including PayPal and Zilch have also introduced physical cards, reflecting growing fintech rivalry as regulators ready tighter oversight of BNPL services.