Buy now pay later (BNPL) banking platform Klarna is introducing a physical Visa card in the U.K. that already has a waitlist of 400,000, according to a blog post on Wednesday (Jan. 26).
With the Klarna Card users can pay in up to 30 days with the same flexibility and transparency Klarna offers and without the risks of interest and revolving credit. The card launches in conjunction with Klarna’s Pay in 30 plan, which gives customers the ability to make payments for merchandise anytime within 30 days following the purchase date. Additional payment plans are in the works for release in the future.
Alex Marsh, Head of Klarna U.K., said that shoppers are turning away from high-interest credit that extends repayment for months and years.
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“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 U.K. brings those benefits to the offline world, giving consumers the control and transparency of BNPL for all of their in-store purchases,” Marsh said.
The Klarna Card reaches over 800,000 shoppers in Sweden and Germany, with plans to launch in the U.S. The rollout of the Klarna Card in the U.K. is being done progressively and will be available to all eligible consumers in several months.
Three months ago, Klarna introduced Pay Now to U.K. customers, offering shoppers the ability to have the same BNPL payment experience but with a pay immediately in full option. Klarna has also worked to make affordability checks and checkout language stronger and has increased the ways consumers can challenge complaints decisions if necessary. In addition, late fees were removed from its regulated financing product.
Read more: How Klarna Authenticates Users to Provide a Secure and Convenient BNPL Experience
Klarna works with more than 250,000 retail partners in 20 countries, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress. Valued at $45.6 billion, the company was founded in 2005, and has over 5,000 employees.
Backed by Sequoia Capital since 2010, Klarna has also reaped investments from Dragoneer, Bestseller Group, Permira, Visa, Atomico, Ant Group, and others. Headquartered in Stockholm, Sweden, the private firm has reportedly been mulling an IPO.
