Klarna secures UK EMI licence, launches new features

By Vriti Gothi

Klarna has been officially authorised by the UK Financial Conduct Authority (FCA) as an Electronic Money Institution (EMI). This development sets the stage for the UK rollout of Klarna Balance and Klarna Cashback, two customer-centric financial tools designed to enhance everyday money management for over 11 million UK consumers.

Already operational in the United States and across 14 European markets, Klarna Balance introduces a dynamic new way for UK customers to hold and manage funds within the account. Users will be able to top up their balance using a debit card, make purchases, receive refunds seamlessly, and access instant cashback rewards. The Klarna Cashback feature will offer up to 10% cashback on purchases made via its app, credited directly to the Klarna Balance delivering real-time value without the need for points, tiers, or gimmicks.

Abby Vickers, Head of Klarna Financial Services UK, said, “This authorisation marks the next big step in the UK, moving beyond flexible payments into everyday financial management. While traditional banks are still playing catch-up, it is giving consumers a smarter way to spend and, now, to manage their finances too. This is what modern money management looks like: manage, spend, and get rewarded without the hassle.”

The EMI licence was granted to Klarna Financial Services UK Limited, the group’s standalone UK legal entity. It builds upon their existing permissions and reflects its long-term strategic investment in the UK as a key growth market. More broadly, this regulatory authorisation underlines its ambition to transform retail banking by offering transparent, intuitive, and rewarding digital finance experiences.

With features like Balance and Cashback, the company is taking a decisive step towards becoming a full-spectrum financial partner for the digital-first consumer—integrating spending, saving, and rewards into a single, frictionless ecosystem.