Following a successful test run in the U.S., Klarna is expanding its debit card service into Europe. This move coincides with reports that the buy-now, pay-later giant plans to relaunch an initial public offering (IPO) it previously postponed.

Since the Klarna Card’s launch in July, 685,000 U.S. customers have opted for the service, contributing to card-based products accounting for 10% of Klarna’s overall global payment volume.

Klarna is now making its debit card available in ten European countries, including France, Italy, Spain, and Sweden, with plans to expand into nations like Denmark and Germany soon.

The Klarna Card, supported by Visa Flexible Credential, offers a flexible payment experience where users can switch between various services such as BNPL, credit, or debit all on one card. For BNPL users, options like Pay in 3, Pay Later, or extended financing are available for larger purchases.

The success of the card reflects the demand for flexibility among consumers,” noted Ben Danner, a Senior Analyst at Javelin Strategy & Research. Consumers can choose to run transactions as a debit transaction or leverage Klarna’s BNPL functionality. This move by the largest BNPL provider aims to capture everyday spending typically associated with traditional debit and credit cards. With Europe and the U.S. being heavy card-using regions, I expect success in these markets, particularly where debit cards are prevalent.”

Ahead of the IPO

Klarna’s European expansion is part of a series of aggressive strategic moves. The company recently announced plans for a renewed attempt at a New York IPO, aiming to raise up to $1.27 billion, suggesting a valuation range of $12.5 billion to $14 billion.

A Series of Bold Partnerships

This marks a busy year for Klarna with several key partnerships designed to broaden its reach and profitability:

• In February, Klarna partnered with JPMorgan’s merchant network to bring BNPL to more merchants.




• DoorDash integrated Klarna’s BNPL options in March.




• Klarna extended pay-in-4 options to American eBay users after a successful trial in Europe.




• The company launched mobile phone plans in the U.S. as part of a “super app” strategy in June.




• In August, Klarna sold $26 billion worth of BNPL loans to student loan servicer Nelnet.