At Money20/20 Europe in Amsterdam, Visa announced plans to launch a pilot for an FDIC-insured debit card in collaboration with Klarna and to introduce Zilch’s first physical card.
David Sandstrom, CMO at Klarna, and Mathieu Altwegg, SVP of product and solutions for Visa Europe, discussed the innovative partnership. Sandstrom outlined the card’s purpose: “It enables people to use Klarna on a piece of plastic everywhere, online and in-person, appealing particularly to those wary of traditional credit cards and revolving debt.”
He noted that users can purchase as usual at checkout, integrating with the Klarna ecosystem to choose payment options like Pay in 4 and Pay Later. “It enables smart, flexible payments and BNPL features, powered by Visa’s advanced technologies, creating the perfect blend for everyday purchases,” Sandstrom said.
Altwegg emphasized the consumer-centric nature of the card, mentioning its use across Visa’s network of over 150 million merchants. He explained, “Consumers can decide to pay now, later, in installments, or with multiple currencies, all on one platform. This flexibility supports responsible financial choices, evolving with consumers’ life stages.”
The card is set to launch in the US, where five million consumers are on the waitlist. Sandstrom highlighted that it will cater to the 100 million Klarna users seeking flexible payment options.
Zilch Introduces Visa-Backed Flexible Payments Card
In a panel session titled ‘From Disruption to Integration: What’s Driving the New Financial Order?’, Zilch co-founder and CEO Philip Belamant announced their partnership with Visa to release Zilch’s first physical card. He emphasized the card’s innovative flexibility, partnering with “the original fintech.”
Belamant shared that Zilch has garnered five million customers, growing by around 100,000 each month. He described the versatility of the card, stating, “This isn’t just a credit, debit, or prepaid card anymore. Through our app, users can select whether a transaction is debit, credit, or deferred debit, and they can change their options as needed.”
Lucy Demery, Senior VP of Commercial Solutions in Europe at Visa, discussed significant industry progress over the past year, highlighting that 69% of listed fintechs are profitable. She noted Zilch’s position as the fastest-growing unicorn in EMEA and emphasized a new stage of convergence between traditional financial institutions and fintechs.
Demery added, “We’re looking to transform Visa into more of a Visa-as-a-service model, granting our partners access to our capabilities, network, data, and analytics, fostering a more open ecosystem.”