Klarna card: what is it and how does it work

Zorica Lončar

If you’ve been shopping online recently, you may have spotted Klarna as a payment option at the checkout.

Klarna is a Swedish fintech company which specialises in providing ‘buy now, pay later’ and other flexible payment services for retailers. It also has its own Klarna mobile app, through which you can secure small loans at payment for purchases at all kinds of retailers.

The company has now launched its own Klarna card, a physical card you can use to pay for purchases when shopping in person.

But how does a Klarna card work and where can you use it? And crucially, how much does it cost? We’ll answer these questions and more here in this handy guide to the Klarna card.

Plus, some info on a money-saving alternative if you shop at international websites or when travelling abroad - the Wise multi-currency debit card.

But more on this later. For now, let’s get back to the Klarna card.

What is the Klarna card?

The Klarna card is a type of credit card, which you can use at the till when shopping at a physical retail store. It offers the chance to pay for your purchase up to 30 days later, interest free¹.

How does the Klarna card work?

The Klarna card works in a similar way to an ordinary credit card. It’s a real physical card (so not a digital or virtual card) that you can keep in your wallet and hand over at the till when paying for a purchase.

It’s contactless, so you can just tap to pay. It also works with Apple Pay and Google Pay, so you can make contactless payments using your smartphone, smart watch or other smart device.

When you apply for the Klarna card, it will be connected to your existing bank account.

You can manage your card and all your spending in the Klarna app. You can see purchase notifications and get instant estimates of how much you can spend. If your card is lost or stolen, you can use the easy controls in the app to block or freeze your card at any time¹.

Plus, you can see payment schedules and set up reminders so that you can clear your balance within the 30-day period.

Where can I use a Klarna card?

The Klarna card can be used anywhere that Visa is accepted¹. This means you can use it in most retail stores, and online too.

You can even use it abroad, as Klarna charges no foreign exchange fees or mark-ups². However, it is a Visa card and uses Visa’s exchange rates, so you may not necessarily get the mid-market rate on currency conversions³.

You can’t use the Klarna card to withdraw cash from an ATM¹. It’s only for purchases.

Is the Klarna card free?

There are no sign-up costs to get a Klarna card¹, and all purchases are interest free for 30 days.

There’s no interest charged for late payments, but there are of course other consequences if you fail to pay off your full balance in time. For example, Klarna may pass your case to an external debt collection agency and your credit score could be affected⁴.

Is there a spending limit on the Klarna card?

There is a spending limit on the Klarna card, but it’s not one predefined maximum figure that applies to everyone.

You’ll need to get an estimate via the Klarna app to see how much you can spend with your Klarna card. This is known as ‘purchase power’ and it’s set on an individual basis, depending on things like your credit history. If you’re an existing Klarna customer, your repayment history with Klarna will be taken into account¹.

Klarna advises that the best way to increase your purchase power is to make your repayments on time.

How to apply for a Klarna card

If you think the Klarna card could be a good fit for you and your shopping habits, here’s how to apply for it⁵:

  1. Download the Klarna mobile app or create an account and apply for your card on the Klarna website.
  2. In the app, select ‘Klarna card’ and ‘Get the Klarna card’ to complete your application.
  3. Wait around 5-7 business days for your application to be processed and approved.

An important thing to note is that Klarna does carry out credit checks on all new applicants. This won’t affect your credit score, but it could affect your chances of being accepted for a Klarna card if you have a poor credit history⁵.

You’ll also need to be at least 18 years old and a UK resident to be eligible for a Klarna card⁵.

Shop internationally? Check out the Wise multi-currency card

If you shop on international websites or travel a lot, the Wise multi-currency card could be the ideal solution.

The contactless Wise debit card can be used in 175 countries (including the UK) for shopping, dining, hotels and for ATM withdrawals too. It automatically converts currency at the mid-market exchange rate whenever you spend, whether it’s in person or online. You’ll only pay a tiny fee for the currency conversion, or it’s free if you already have the currency in your account.

There are no hidden transaction fees or mark-ups on the exchange rate, so you know exactly what you’re spending. It’s secure, convenient and an easy way to get the best rates when spending in other currencies.

Open a Wise multi-currency account online for free and get your own Wise international card for a tiny one-time cost of £5.

Join Wise today

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.

And that’s pretty much it - everything you need to know about the Klarna card, including what it is and how it works. We’ve covered how to apply, where you can use it, spending limits, costs and much more.

After reading this guide, you should have all the info you need to decide whether the Klarna card is right for you. Happy shopping!


Sources used:

  1. Klarna UK - Card
  2. Klarna UK Blog - the Klarna card is here
  3. Klarna Card Terms and Conditions
  4. Klarna Pay in 30 Legal Terms
  5. Klarna UK - How do I apply for a Klarna Card?

Sources last checked on date: 06-Oct-2022


Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

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