The Financial Conduct Authority (FCA) has granted an electronic money institution license to Klarna’s UK business, the company announced in a statement on Wednesday. Debit cards and Klarna accounts will soon be available to UK-based clients from the Swedish fintech, which up until now has concentrated on purchase now, pay later services.
Consumers will be able to top off their debit cards, shop and receive money, manage and save money in their accounts, and receive up to 10% cashback on their transactions. Abby Vickers, the CEO of Klarna Financial Services UK, stated, “This authorization represents Klarna’s next significant step in the UK moving beyond flexible payments into everyday financial management.
As it becomes a genuine everyday spending and saving partner for customers, the license “lays the foundation for future product expansion, strengthening Klarna’s ambition to disrupt traditional retail banking,” Vickers continued. With this step, Klarna will be able to compete with well-known online banks like Monzo and Revolut.
A fully licensed Swedish bank, Klarna Bank AB, continues to offer regulated services in the UK under the FCA’s Temporary Permissions Regime (TPR) after Brexit. The fintech then created a new company in the UK in 2023 to offer all services aimed at UK consumers.
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