Buy now, pay later payment firm Klarna has launched a physical payment card that can be used for in-store payments in the UK.
The card will allow consumers to pay with Klarna’s ‘Pay in 30,’ meaning anytime up to 30 days after purchase. With additional payment options to be added in the future.
The global banking, payments and shopping service explained in a statement that the payment card would give UK consumers the “flexibility to pay later for purchases everywhere, without the inherent risks of interest and revolving credit”.
The ‘Klarna Card’ was first introduced in Sweden and Germany last year, where it has reached more than 800,000 consumers, and Klarna has added that it also has plans to launch the card in the US.
In the UK, the payment firm said that the card has a waitlist of 400,000 consumers, which it adds shows a “strong demand for a new approach to credit,” and that the Klarna Card would be made available in-stages in the upcoming months.
The ‘Klarna Card’ launches in the UK to allow consumers to ‘Pay in 30’ for in-store purchases
Klarna said that its payment card aims to empower consumers with greater control, transparency and choice over how they pay, as it believes that its Pay Later products are: “a fairer and more sustainable alternative to traditional credit, providing payment flexibility with clear payment schedules, no interest and, in the case of Klarna, no late fees”.
The Klarna Card is a Visa card, and consumers can select black or Klarna’s signature pink. Shoppers will also be able to use the card via Apple or Google Pay, or by in-store contactless payment. Payment terms for items will be up to 30 days, with Klarna stating no foreign exchange fee/markup, and users will have the ability to extend the due date for up to 10 days for free.
Users will be able to view all in-store purchases made using the card in the Klarna app, alongside receiving instant push notifications for all transactions, even if a payment is declined, and have the ability to short-term card block quickly.
Alex Marsh, head of Klarna UK, said: “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 in-store purchases.”
Today’s launch follows a series of enhancements to Klarna’s offering in the UK, in October, the company launched a ‘pay now’ option, allowing consumers to pay immediately and in full, wherever Klarna is available. Klarna also strengthened its affordability checks and checkout language and removed the last remaining late fees on its regulated financing product as it looks to set improved standards for the UK payments industry.