Klarna Card Gains 1 Million US Users in First 11 Weeks

Klarna says more than 1 million Americans have signed up for the Klarna Card in the 11 weeks since its July 4 launch in the United States.

The Klarna Card gives consumers the choice of paying instantly with debit or spreading the cost over time, the global digital bank and payments provider said in a Thursday (Sept. 25) press release.

“The amazing response to our card in the U.S. shows just how strong the demand is for a fairer, more transparent way to pay,” Klarna Chief Marketing Officer David Sandström said in the release. “With the Klarna Card, consumers get the best of both worlds; the simplicity of a debit card with the flexibility of credit.”

Klarna unveiled the Klarna Card in June, saying the card spends like debit but can flip into pay later mode, extending the buy now, pay later (BNPL) model from the checkout screen to the in-store experience.

The Klarna Card is built on Visa’s Flexible Credential, issued by WebBank and housed in a Federal Deposit Insurance Corp.-insured wallet.

Visa’s Flexible Credential is a network capability that lets a single piece of plastic surface multiple funding sources. In the case of the Klarna Card, this capability works behind the scenes to allow consumers to pay up front in debit mode or activate Klarna’s Pay in 4 and pay later plans at any merchant that already accepts Visa.

Sandström said in the announcement of the Klarna Card that consumers want “simplicity, flexibility and transparency.”

“That’s exactly what has made Klarna’s payment methods so popular online, and now we’re bringing that same experience to a physical card,” Sandström said.

Klarna said Aug. 14 that its year-over-year revenue growth accelerated to 20% in the second quarter and was especially strong in the U.S., where it was gauged at 38%.

The company attributed its growth to its expanding merchant ecosystem and its engagement with consumers.

“The Klarna Card is becoming a preferred payment method across our most mature European markets, and we’re now rolling out an enhanced version in the U.S.,” Klarna CEO and Co-founder Sebastian Siemiatkowski said at the time in a press release. “Strategic integrations with leading [payment service providers (PSPs)] and our partnerships with some of the world’s largest merchants are expanding Klarna’s reach and accelerating our growth.”