Marqeta Powers Klarna's US Debit Card via Visa Platform
Marqeta has partnered with Klarna to launch a debit card in the United States that combines immediate and deferred payment options through Visa's Flexible Credential technology.
The Oakland-based payment processor will provide the infrastructure for Klarna's new card product, which entered the trial phase in the US market. The Swedish buy-now-pay-later (BNPL) provider plans a broader American rollout later this year.
The collaboration builds on a partnership dating to 2018, when Marqeta began powering Klarna's virtual cards in the US market. Marqeta now supports Klarna operations across six countries.
Visa technology enables dual payment modes
The card utilises Visa Flexible Credential, a technology that allows consumers to choose between immediate debit payments and deferred payment options at the point of sale. Marqeta became the first US issuer processor certified for the Visa technology in July 2024.
The credential technology represents Visa's attempt to bridge traditional card payments with the growing buy-now-pay-later sector. The system processes transactions through existing payment rails while offering consumers flexibility in payment timing.
Klarna's US card launch comes as the company faces increased regulatory scrutiny of the buy-now-pay-later sector.
The Consumer Financial Protection Bureau issued an interpretive rule in May 2024 requiring BNPL lenders to provide consumers with key legal protections that apply to conventional credit cards.
However, the Trump administration has since reversed course, with the CFPB announcing in May 2025 that it will not prioritise enforcement actions against BNPL companies.
Partnership spans multiple markets
The partnership allows Klarna to offer payment flexibility without requiring merchants to integrate separate buy-now-pay-later systems. Consumers can access deferred payment options through standard card acceptance infrastructure.
"The future of payments is flexible, and we're proud to enable this new offering together with Visa," says Rahul Shah, Chief Product and Engineering Officer at Marqeta.
"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."
Klarna operates in markets where regulatory approaches to BNPL vary significantly. The company processes 2.9 million transactions daily across its global platform, serving over 100 million active users worldwide.
The card launch positions Klarna to compete more directly with traditional payment providers while maintaining its flexible payment proposition.
Klarna's business model relies on merchant fees rather than consumer interest charges for standard payment deferrals, generating revenue through interchange fees, late payment charges and merchant partnerships.
Market dynamics shift amid regulatory changes
The US market represents a key growth opportunity for Klarna, which competes with domestic providers including Affirm, Afterpay, and traditional credit card companies expanding into flexible payment offerings.
Marqeta's certification for Visa Flexible Credential technology provides the company with differentiation in the competitive payment processing market. The processor handled nearly US$300bn in annual payment volume during 2024.
The partnership demonstrates how established payment infrastructure providers are adapting to support emerging fintech business models.
Traditional card networks increasingly offer technologies that bridge conventional payment methods with alternative financing options.
Recent CFPB research found that more than one-fifth of consumers with a credit record used BNPL loans in 2022, up from 17.6 percent in 2021.
The study revealed that most BNPL borrowers had subprime or deep subprime credit scores, with 63% holding multiple simultaneous BNPL loans at some point during the year.
"Through our continued partnership with Marqeta and Visa, we're evolving the Klarna Card into a truly dynamic and versatile payment experience," says David Sandström, Chief Marketing Officer at Klarna.
"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."
Explore the latest edition of FinTech Magazine and be part of the conversation at our global conference series, FinTech LIVE.
Discover all our upcoming events and secure your tickets today.
FinTech Magazine is a BizClik brand
