Klarna believes its two newest UK products will rebuild trust in banking which was taken by traditional players.
Klarna has unveiled a new debit card and a digital wallet in the UK in a bid to restore the trust traditional banks have taken out of banking.
The Klarna Card, a flexible debit card, and Klarna Balance, a digital wallet, were announced on October 16. Both products launched earlier in parts of Europe but are only now being made available in the UK.
The first new product, Klarna Balance, allows customers to store e-money in a Klarna account. Users can add and withdraw funds, receive refunds and earn cashback rewards for selected Klarna purchases.
The Klarna Card, powered by Visa, allows customers to make purchases with debit as the default. Consumers can also apply for a spending plan if they want to use credit, which the company says is an option “when credit makes sense”.
David Sandström, Chief Marketing Officer of Klarna, said the ability to choose between debit and credit creates a “beautifully simple experience”.
“Traditional banks have taken the trust out of banking. We’re here to change that and our new Klarna Card puts you in control: the simplicity of debit with the flexibility of credit, all wrapped in a beautifully simple experience,” said Sandström.
Taking aim at traditional banking
Klarna is known for making bold statements. This was clear when the company reacted to the US decision to regulate BNPL in the same way as credit cards.
Although the decision was later reversed, Klarna said the two products were like “oranges” and “apples” in a blog post titled ‘The CFPB should recognise key differences between BNPL and credit cards’.
More recently, Klarna CEO Sebastian Siemiatkowski said: “Many people in the tech industry, especially CEOs, tend to downplay the consequences of AI on jobs, white-collar jobs in particular. I don’t want to be one of them.”
These comments came after the company reportedly cut 45% of its workforce and replaced it with AI. Siemiatkowski also admitted this led to a decline in quality.
These examples show Klarna is not afraid to make a statement and unveiling products other than BNPL, where it is already one of the largest players in the world, is a statement in itself.
The company is betting on customer personalisation and believes the hybrid model of debit and credit will become the new standard. Even before the product was launched, there were reports in June 2025 that five million consumers were already on the waitlist.
This focus on personalisation has become more common among new players entering traditional banking. Challenger banks like Monzo and Revolut have also tried to stand out by offering tailored products which give customers more control over their finances.
