Klarna launches debit card and membership scheme – how do they work?

Swedish 'buy now, pay later' (BNPL) provider Klarna has launched its first debit card in the UK, alongside a new membership rewards scheme.

Shoppers can either use the card like a normal debit card, spending money they’ve already topped up in their Klarna balance, or they can choose to use one of Klarna’s credit options –  such as spreading payments over three instalments with Pay in 3.

The membership reward scheme starts from £17.99 per month and offer cashback on Klarna balance purchases, a range of subscriptions and travel insurance.

Here, Which? explains what the card and membership schemes offer and what to consider before applying

How does the Klarna card work?

The Klarna Card works alongside Klarna balance, a new digital wallet that lets customers store e-money, add or withdraw funds, and earn cashback on certain Klarna purchases.

By default, the card functions as a debit card, using money held in your Klarna balance to pay for transactions.

If you want to spread the cost, you can apply for a payment plan such as Pay in 3, which allows you to split purchases into three interest-free instalments. Credit is granted on a case-by-case basis following an eligibility check.

The card also comes with no foreign exchange fees when spending abroad or in other currencies.

Klarna says the card gives customers the choice to use debit or credit, and is aimed at people who want more control of their payments.

• Find out more: buy now, pay later schemes explained 

How does Klarna membership work?

The Klarna membership programme allows customers to access a range of benefits, such as cashback, subscriptions and airport lounge access, for a monthly subscription fee. 

The Premium tier costs £17.99 a month and includes:

• Subscriptions to any of the following: Audiobooks.com, Blinkist, ClassPass, Clue, Condé Nast (Vogue & GQ), Headspace, Laundryheap, Picsart, The Times and Sunday Times
• 0.5% cashback everywhere when using Klarna balance account
• Global travel insurance
• 2GB travel eSIM 

The Max tier costs £44.99 a month and includes:

• Subscriptions to any of the following: ASMALLWORLD, Audiobooks.com, Blinkist, ClassPass, Clue, Condé Nast (Vogue & GQ), Headspace, Laundryheap, Picsart, The Times and Sunday Times
• 1% cashback everywhere when using Klarna balance account
• Comprehensive travel, rental-car, and cancel-for-any-reason insurance 
• 5GB travel eSIM
• Unlimited airport lounge access worldwide via LoungeKey Pass (1,600+ lounges and travel experiences)

Members can also convert their Klarna earned cashback directly to leading travel and hospitality partners, including airlines such Air France–KLM, Virgin Atlantic and Turkish Airlines and hotel groups like Accor, IHG Hotels & Resorts, Radisson, Global Hotel Alliance, and Wyndham.

Is Klarna membership worth it?

Klarna says the Premium and Max memberships offer nearly ten times their monthly value in lifestyle and travel benefits, with the Premium and Max memberships offering up to £3,000 and more than £5,000 worth of perks and benefits per year respectively.

The scheme could be good value if you use lots of the subscriptions offered. 

For example, as a Premium member you get 10 Classpass credits and 1 WeWork pass per month. Nine credits costs £15 per month when bought directly from Classpass, and WeWork on Demand day passes start from £35 a day.

Whether membership is worth it will ultimately depend on how many of the benefits you use, and how often you use your Klarna balance account.

The cashback rates offered are comparable to some of the best-paying rewards credit cards, but the monthly fee means it's not worth joining for the cashback alone.

• Find out more: best cashback and reward credit cards

Who is Klarna?

Klarna is most commonly known as a BNPL provider. BNPL schemes allow shoppers to spread the cost of payments in interest-free instalments. 

BNPL is currently unregulated, but protections are due to come into force in July in 2026.

In the UK, Klarna also provides regulated credit through its Klarna Financing and Klarna Credit Card. In July, Klarna was authorised to act as an electronic money institution (EMI).

• Find out more: the long road to ‘buy now, pay later’ regulation

Is your money safe?

Klarna is authorised as an EMI by the Financial Conduct Authority. This means there are safeguards in place to protect your money if the provider goes bust, but they differ from the protections offered by a traditional bank.

Any money deposited with a bank is protected by the Financial Services Compensation Scheme (FSCS), which protects up to £85,000 if the provider fails. 

Money held with EMIs isn’t covered by the FSCS. Instead, e-money firms must put funds in a safeguarding account or insurance policy, to ensure they have enough money to pay out to customers. 

Safeguarding protections are provided by the EMI itself, rather than an independent organisation like the FSCS. 

This can mean that it may take longer to get your money back if the firm goes out of business. You should get most of your money back, but some costs could be taken by the administrator of the firm. 

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What protections do I have when using the Klarna card?

Chargeback protection applies to purchases made using the Klarna card. Chargeback allows you to dispute a card transaction and request your money back if you're let down buying goods or services - for example if your goods are damaged or not as described.

As Klarna is regulated as an EMI, customers can take complaints about their Klarna balance or debit card functionality to the Financial Ombudsman Service.

But as BNPL is currently unregulated, customers won’t be able to go to the Ombudsman about purchases made using the flexible payment options. 

Shoppers also won’t be covered by Section 75 protection for buy now, pay later purchases, as they would be when using a credit card.

Section 75 of the Consumer Credit Act makes the card provider jointly liable with the retailer for purchases between £100 and £30,000.

BNPL regulation is due to come into effect in July 2026, meaning shoppers should get access to Section 75 protection and recourse to the Ombudsman. 

Klarna has previously told Which? that its purchases come with Klarna’s Buyer Protection and that is has introduced an internal complaints adjudicator as an interim step until its customers can access the FOS. 

How to shop safely with BNPL

BNPL is a form of credit and missed payments can lead to late fees, a damaged credit score and in some cases referral to a debt collection agency.

Following these tips will help you use BNPL safely:

• Use alerts: set up reminders or use in-app alerts to remind you when repayments are due to avoid missed payments and late fees.
• Create a budget: Work out how much you would need to repay each month and what you can afford to spend to make sure you can manage the repayments without putting strain on your finances.
• Don’t overextend your borrowing: Think carefully about whether you'll be able to meet existing BNPL repayments before applying for credit from other providers.
• Make returns quickly: It’s worth returning any unwanted purchases as quickly as possible, so that you don’t end up making repayments for something you’re planning to send back.