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Klarna Tests its First Debit Card, with Visa and WebBank

Payment and Card

Business Honor
11 June, 2025

Klarna tests U.S. debit cards, enabling customers to pay immediately or in interest-free monthly installments, targeting growth in its largest market with 37 million users.

Klarna, the Swedish fintech company, is testing its first debit card, switching from its Buy Now, Pay Later (BNPL) services. Developed with Visa and issued by WebBank, the card enables customers to pay immediately or divide payments into interest-free monthly installments, both online and offline.

As Klarna lacks a U.S. banking license, WebBank maintains the balances on the cards and accounts. Company will provide two premium versions of the card with cashback special offers in addition to a version that is free. The test launch follows Klarna's second postponement of its U.S. initial public offering (IPO), which is connected to market change caused by the new tariffs imposed by President Donald Trump. After a decrease to $6.7 billion in 2022 from its first value of $45.6 billion, Klarna is now expected to rise to over $15 billion.

The United States, with more than 37 million customers, is Klarna's largest market with regard to revenue. CEO Sebastian Siemiatkowski stated that a U.S. initial public offering (IPO) could happen "quite soon" after Klarna posted its first overall profit nearly four years of loss.

Klarna, founded in 2005, is testing a new credit card targeting younger users and those who want to stay free of debt. In addition to providing credit to 150 million users and handling nearly 2 million payments every day in 45 countries, it modernized purchasing online and became an important player in global payments.