### Klarna Launches New Debit Card with Buy Now, Pay Later Features
Klarna, a leading buy now, pay later (BNPL) service, has introduced a new debit card that merges traditional debit spending with BNPL flexibility. The Klarna Card allows users to load funds and use it like a standard debit card or opt for BNPL financing at checkout, choosing between Pay-in-4 (four interest-free installments with a small fee) or Pay Later (30-day repayment). While the card requires no credit check for debit use, a soft credit check applies for BNPL transactions. Unlike credit cards, Klarna’s financing options don’t charge interest or report to credit bureaus, but they also lack key credit-building benefits and robust fraud protections.
### Paid Tiers Offer Rewards—But Are They Worth It?
The Klarna Card will have a free tier and two paid membership levels—Member ($3.49/month) and Plus ($7.99/month)—offering cash back, merchant discounts, and high-yield APY on stored balances. The Plus tier provides 3.22% APY and 2% cash back, but the monthly fees may outweigh the rewards. For comparison, many no-fee credit and debit cards offer similar perks without extra costs. Additionally, Klarna’s Pay-in-4 feature comes with a small fee, unlike competitors like Afterpay and Affirm, which offer interest-free installment plans at no extra charge.
### Should You Choose Klarna Over a Credit Card?
While Klarna’s card provides an alternative for those avoiding credit, experts argue traditional credit cards are a better option. Credit cards offer stronger fraud protection, credit-building opportunities, and often better rewards without monthly fees. Klarna’s BNPL options also come with merchant restrictions, unlike credit cards, which provide more flexibility. Ultimately, unless users specifically want BNPL without credit checks, a standard rewards credit card may be a more cost-effective and secure choice. The Klarna Card is currently in U.S. testing, with a broader rollout expected later this year.
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