You are here: Home - Credit Cards & Loans - News -

Klarna to launch payment card

0
Written by: Emma Lunn
26/01/2022
The buy now pay later (BNPL) lender is throwing down the gauntlet to banks and credit card firms by launching its first physical card in the UK.

Klarna says the Klarna Card will empower customers “with greater control, transparency and choice over how they pay” and give consumers “the flexibility to pay later for purchases everywhere, without the inherent risks of interest and revolving credit”.

The Klarna Card will launch with Pay in 30 which allows customers to delay payments for up to 30 days. The payment option will be available wherever cards are accepted. Previously Klarna only offered BNPL online for UK customers.

The Swedish company plans to add additional payment options, such as Klarna Pay Later, in the future.

Alex Marsh, head of Klarna UK, says: “Consumers are rejecting credit products which charge double-digit interest rates while allowing repayments to be put off indefinitely. For online purchases where credit makes sense, buy now pay later has become the sustainable alternative with no interest and clear payment schedules.

“The launch of Klarna Card in the UK brings those benefits to the offline world, giving consumers the control and transparency of BNPL for all of their instore purchases.”

Klarna said the card already has 800,000 users in Sweden and Germany, and it also plans to launch a card in the US.

In the UK, the Klarna Card will be made available to all eligible consumers in the upcoming months; the card currently has a waiting list of 400,000 consumers.

Consumers can sign up to be on the waitlist by tapping ‘Klarna Card’ in the latest version of the Klarna app or via their online account.

The launch of the Klarna card is the latest in a series of new products from the lender. In October the company launched ‘Pay Now’, which allows customers to pay immediately and in full.

Klarna said it has also strengthened affordability checks and checkout language, and provided more ways for consumers to challenge complaints decisions.

BNPL lenders such as Klarna give shoppers the option of delaying or splitting payments with no fees or interest. Critics say such schemes encourage people to spend more than they can afford, with Citizens Advice saying they can be a “slippery slope into debt”. Earlier this month, Which? called for stronger safeguards for BNPL users and said borrowers often don’t understand the risks involved.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week