Marqeta Powers Klarna’s Recently Announced Flexible Payment Card

Marqeta’s card issuing platform powers the recently announced Klarna Card debit card that will allow Klarna customers in the U.S. to use the same card to pay immediately or pay later, according to a Thursday (June 12) press release.

The Klarna Card debit card is powered by Marqeta’s card issuing platform that enables embedded finance solutions and by the Visa Flexible Credential (VFC) that allows access to built-in flexible payment options, the release said.

The Klarna Card is in a trial phase in the U.S. and is expected to be rolled out more broadly in the country later this year, per the release.

“The future of payments is flexible, and we’re proud to enable this new offering together with Visa,” Marqeta Chief Product and Engineering Officer Rahul Shah said in the release.

Marqeta announced it had been certified for Visa Flexible Credential in July 2024, according to the release.

The company’s flexible card issuing platform enables companies like Klarna to expand to new markets and add innovative payment options, the release said.

The collaboration of Marqeta and Klarna on the new Klarna Card builds upon their existing relationship in which Marqeta supports Klarna in six countries and has powered Klarna’s virtual cards in the U.S. since 2018, per the release.

“Through our continued partnership with Marqeta and Visa, we’re evolving the Klarna Card into a truly dynamic and versatile payment experience,” Klarna Chief Marketing Officer David Sandström said in the release.

Klarna unveiled the new Klarna Card June 3, saying that the card spends like debit but can flip into pay later mode, extending the buy now, pay later (BNPL) model from the checkout screen to the in-store experience.

When Marqeta announced in July 2024 that it partnered with Visa to enable Visa Flexible Credential, Marqeta said that giving consumers more payment choices would “improve the consumer purchase experience and increase merchant acceptance.”

“Marqeta achieved certification with Visa Flexible Credential in May 2024, which will enable cardholders of Marqeta’s participating customers to easily set parameters or choose whether they use debit, credit, ‘pay-in-four’ with Buy Now, Pay Later or even pay using rewards points,” the company said at the time in a press release.