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Published on
September 2, 2025
5 min read
Klarna Launches EU Debit Card, Seeks $1.27 Billion in U.S. IPO
Swedish digital bank Klarna has launched a debit card in EU countries. According to Tech.eu, the fintech company plans to launch the Klarna debit card in the U.K. soon as it takes on existing financial service providers. Klarna launched its EU debit card as it seeks to raise $1.27 billion in its much-awaited U.S. IPO as per Reuters.
Challenging Conventional Credit
Klarna’s debit card launch comes about a month after successfully introducing it in the U.S. in July 2025. The move to introduce a debit card is part of Klarna’s long-term banking expansion strategy. Klarna, which is known for its buy now, pay later (BNPL) products, seeks to challenge conventional credit card providers in Europe by offering customers a flexible payment or upfront payment options.
Customers can choose to pay immediately with their money, Pay Later, or Pay in 3 when they shop online or make in-store purchases. Customers also have the option of leveraging longer-term financing for large purchases upon approval. Currently, Klarna has more than 100 million active users. About 685,000 customers have signed up for the card in the U.S. since its launch in July 2025.
In Europe, the fintech company is rolling out the Klarna debit card to customers in Belgium, Austria, France, Italy, Portugal, the Netherlands, Finland, Ireland, Spain, and Sweden. Klarna also plans to introduce the card in Denmark, Norway, Germany, and Poland.
Klarna’s U.S. IPO Filing
Klarna is planning an IPO in the U.S. at a $13 to $14 billion valuation. On Tuesday, September 2, 2025, a regulatory filing showed the Swedish fintech plans to issue a total of 34.3 million ordinary shares priced at $35 to $37 each.
The company will list on the New York Stock Exchange under the symbol “KLAR”. Goldman Sachs, Morgan Stanley, and JP Morgan are the lead underwriters of the Klarna IPO. The move to go public in the U.S. reflects Klarna’s focus beyond BNPL in Europe as it seeks to establish itself firmly in the financial world.
But most importantly, gaining a foothold in the U.S. market may catalyze Klarna’s expansion and innovations as it seeks to disrupt conventional financial institutions through its tech-driven approaches. Its strategy of offering customized payment solutions will likely shape customer banking experiences.
Leveraging Visa Technology
The Klarna debit card is powered by Visa Flexible Credential technology, which means the card is accepted in over 150 million Visa merchant locations across the globe. Klarna has touted the new debit card as an all-encompassing payment option that customers can use to pay for everything, from their day-to-day essentials to large purchases.
By providing a mix of flexible pay later options and upfront payments, the card gives customers control over their finance.
“When I was a teenager working in retail, the checkout terminals gave consumers a simple choice: debit or credit. Over time, that choice was taken away and consumers had less control over when to use debit or credit. Our new Klarna Card brings that choice back, giving consumers control over their money again,” Klarna CEO and Co-founder Sebastian Siemiatkowski said.
The Klarna Card builds on the fintech firm’s growing portfolio of card-based products, which already account for 10% of its global payment volume.
Stirring the EU Banking Sector
Klarna’s move to introduce a debit card is expected to stir the EU banking sector and increase competition for established banks in the region. By leveraging Visa’s global network and offering customers immediate and deferred payment options, Klarna is seeking to cater to the needs of diverse customers across Europe.
The widespread availability could restore the choice that customers currently lack in credit and traditional debt scenarios. Klarna has previously introduced innovative payment solutions and focused consistently on simplifying financial experiences for its customers. Swedish fintech has adopted a strategy that revolves around increasing convenience and financial flexibility for customers through technology.
This strategy has seen the company gain popularity, particularly among younger demographics. Klarna’s previous success in simplifying complex financial processes creates a solid foundation for its current debit card endeavor.
