Klarna Expands Debit Card Across Europe

September 2, 2025 • FinTech News
Klarna Expands Debit Card Across Europe

Buy now, pay later (BNPL) giant Klarna has officially launched its debit card across Europe. This move gives consumers more flexibility, allowing them to choose between paying upfront or in installments for both in-store and online purchases. This European rollout follows a highly successful debut in the United States. Since its launch there last July, the Klarna Card has already attracted over 685,000 users.

The new card represents a significant strategic step for Klarna. It broadens the company’s payments ecosystem beyond its well-known BNPL services. While Klarna pioneered the BNPL model, card-based products like this are becoming increasingly important. They now make up roughly 10% of the company’s global payment volume. This signals a clear shift in strategy as Klarna transforms itself from a niche financier into a comprehensive payments provider capable of rivaling traditional banks.

Initial Rollout and Future Expansion Plans

Initially, the Klarna Card will be available to customers in ten European countries. These include Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain, and Sweden. The company has already announced plans for further expansion across the continent. Its next target markets are Denmark, Germany, Norway, and Poland.

Restoring Consumer Choice and Flexibility

Klarna’s co-founder and CEO, Sebastian Siemiatkowski, explained the vision behind the launch. He stated that the card aims to restore true choice to consumers. Siemiatkowski noted that retail once offered a simple decision between using debit or credit. However, he believes that over time, this freedom was eroded. The Klarna Card seeks to return control to the user, letting them decide in the moment whether to use debit or leverage flexible installments.

With this strategic launch, Klarna continues its ambitious evolution. It is moving decisively from a specialized BNPL provider into a full-scale, multi-product payments competitor. By adding flexible debit options across Europe, Klarna significantly strengthens its position within the financial services landscape. This move clearly signals the company’s ambition to grow into a dominant global payments powerhouse.