Klarna & Marqeta launch flexible debit card trial in the US
Marqeta has announced its collaboration with Klarna to provide the infrastructure for the new Klarna Card in the United States, which will enable customers to use both immediate and deferred payment options on a single debit card.
The Klarna Card, which is powered by Visa Flexible Credential (VFC), is currently being trialled in the US, with expectations of a wider rollout later in the year. The introduction of the card aims to give Klarna users the ability to choose how and when to pay for purchases, integrating pay-now and pay-later capabilities on the same card.
This development builds upon several years of partnership between Klarna and Marqeta. Since 2018, Marqeta has powered Klarna's virtual cards in the US. The expanded integration with VFC signifies an evolution in how consumers can access and manage payment flexibility through Klarna's services.
Card features
With VFC, Klarna customers will be able to select paying immediately or opting for delayed payments while using the same debit card. The introduction of this technology represents an attempt to meet changing consumer preferences and demand for flexible payment solutions.
Rahul Shah, Chief Product and Engineering Officer at Marqeta, highlighted the importance of flexibility in payments and the ongoing collaboration with Klarna. Mr Shah stated:
The future of payments is flexible, and we're proud to enable this new offering together with Visa. Our ongoing partnership with Klarna is a true testament to what's possible with Marqeta's platform and how we enable our customers to grow and innovate at global scale.
According to Marqeta, the co-operation with Klarna allows both companies to leverage their respective expertise to expand into new markets and offer payment solutions tailored to evolving consumer needs. Marqeta currently supports Klarna operations in six countries, and views these partnerships as contributing to Klarna's global growth and the delivery of customer-focused payment experiences.
Partnership history
The collaboration between Marqeta and Klarna has extended across several years and multiple geographies. Marqeta's platform is designed to allow partners to embed financial services into branded experiences and to exercise control over features such as consumer loyalty programmes and capital efficiency. The Klarna Card project is the latest stage of this partnership, building from a foundation established in the digital and virtual card deployment space.
Klarna's Chief Marketing Officer, David Sandström, commented on the continued evolution of the Klarna Card and the partnership with Marqeta and Visa, stating:
Through our continued partnership with Marqeta and Visa, we're evolving the Klarna Card into a truly dynamic and versatile payment experience. We're excited to continue innovating alongside Marqeta as we scale the Klarna Card to provide smart, seamless payments that empower smarter, more informed shoppers everywhere.
Visa Flexible Credential Certification
In July 2024, Marqeta gained certification as the first issuer processor in the US for Visa Flexible Credential, a significant step that underpins the current initiative with Klarna. The integration with Visa's technology enables Marqeta to deliver cards capable of combining various payment types on a single credential.
By making use of Visa Flexible Credential, the Klarna Card can accommodate customers' varying requirements for immediate or deferred payments, aligning with broader trends in digital finance and payments technology in North America.
Broader roll-out
The Klarna Card, as developed in partnership with Marqeta and Visa, is currently limited to a trial phase in the US. Plans for a wider commercial rollout are in place for later in 2025.
Klarna serves over 100 million global active users and processes approximately 2.9 million transactions per day. The company's partnership with Marqeta forms part of a strategy to scale its flexible payments proposition.
Both companies reiterate that the Klarna Card and its technological platform are designed to support tailored customer experiences and to help both retailers and consumers navigate a changing payment landscape.
