Buy now, pay later giant Klarna has obtained an Electronic Money Institution license from the UK’s Financial Conduct Authority, positioning itself to make a significant impact in the retail banking market.
The license, granted to Klarna Financial Services UK (KFSUK), enables the rollout of new account and cashback features for the company’s 11 million users in the UK.
Already operational in the US and 14 European markets, Klarna Balance allows users to hold and manage funds within their Klarna accounts. Customers can top up their accounts using a debit card, shop with Klarna, receive refunds directly, and earn cashback while shopping.
Klarna Cashback offers consumers up to 10% back on purchases made through the Klarna app, which they can use anywhere Klarna is accepted.
Abby Vickers, head of Klarna Financial Services UK, stated, “This authorization marks Klarna’s next big step in the UK—moving beyond flexible payments into everyday financial management. While traditional banks are still catching up, Klarna provides consumers a smarter way to spend—and now, to save as well. This is what modern money management looks like: save, spend, and get rewarded—without the hassle.”