Klarna unveils flexible Visa debit card with pay later option

By Gloria Methri

Klarna is testing a new debit card in the US that works like cash—until it doesn’t. Powered by Visa’s Flexible Credential technology, the Klarna Card enables users to switch between paying now or later, transforming the buy now, pay later (BNPL) model into a feature that can be carried in your wallet.

Announced at Money20/20 Europe, the card is Klarna’s boldest step yet in its push to become a full-spectrum, everyday payments solution. Issued by WebBank and linked to an FDIC-insured wallet, the card integrates Klarna’s Pay in 4 and Pay Later tools, enabling flexible payments at over 150 million Visa-accepting merchants worldwide.

With over 5 million users on the waitlist, the Klarna Card is already seeing strong demand. A phased rollout in the US is underway, with European expansion to follow later this year.

A smarter card for digital-first money habits

Klarna is betting on a future where users expect more than just “credit” or “debit.” The Klarna Card offers a hybrid model: instant payments when needed, instalments when it helps, and personal finance tools built in — all from one app, one card, one balance.

“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, Klarna’s CMO. “They want simplicity, flexibility, and transparency. That’s what has made Klarna popular online, and now that experience is coming to the physical world.”

The card will support different user tiers — including a free option and two paid plans with perks like cashback and merchant discounts. It will also be available in three colours: aubergine, black, and bright green.

Visa brings the tech muscle

Visa’s Flexible Credential is the engine behind the Klarna Card’s shape-shifting nature. The network capability allows one card to support debit, credit, prepaid, and rewards, giving Klarna the infrastructure to meet consumers wherever they are.

“Millions have embraced the choice and control Flexible Credential offers,” said Mathieu Altwegg, SVP of Product & Solutions at Visa Europe. “This is a glimpse into a future where one card fits all payment preferences — anytime, anywhere.”

Klarna isn’t just expanding BNPL. It’s rewriting how cards work — and where they work. And with Visa behind it, this isn’t just a product test. It’s a preview of the next generation of consumer payments.