According to the Financial Conduct Authority (FCA), Klarna’s UK subsidiary, known as Klarna Financial Services UK (KFSUK), has been granted approval to operate as an Electronic Money Institution (EMI).
New Financial Management Tools for UK Customers
Klarna balance will enable UK users to store and manage funds within their Klarna account. Users can add funds through a debit card and use these funds for purchases via Klarna, with any refunds credited back to the balance.
Another feature is cashback, which offers up to 10% on purchases made through the app, directly credited to the Klarna balance without the need for points or other rewards mechanisms.
A representative from Klarna stated that this authorization aligns with the company’s broader strategy in the UK. The plan involves transitioning from flexible payments to offering more general personal finance tools. This change reflects how users prefer to manage their everyday spending and rewards.
The Electronic Money Institution (EMI) license will facilitate further product development for Klarna, expanding its existing permissions in the UK market. Klarna aims to grow beyond just payment solutions to become a comprehensive financial services provider within the retail banking sector.
