Klarna has initiated its challenge to UK banks’ retail business by launching a debit card and a digital wallet.
According to Klarna, these offerings aim to disrupt a fundamental aspect of retail banking—everyday consumer spending. The digital wallet, Klarna Balance, allows customers to store money, add and withdraw funds, and earn cashback rewards on certain purchases made through Klarna.
The Klarna Card, backed by Visa, has already been introduced across Europe following its initial launch in the US.
“Traditional banks have taken the trust out of banking,” asserted David Sandstrom, chief marketing officer of Klarna. “We’re here to change that.”
This product launch follows Klarna receiving authorization from the FCA in July to provide e-money services.