Klarna Pilots Klarna Card with Visa — Pay Now or Later, All in One
Hey Payments Fanatic!
Klarna has launched the pilot of Klarna Card in the U.S, a flexible new debit-first card powered by Visa’s Flexible Credential and issued by WebBank. The card lets users pay immediately or later — online or in-store — at over 150 million merchants globally.
Unlike traditional credit cards, Klarna Card is built to avoid debt and hidden fees, putting real payment choice in the hands of consumers.
“We consistently hear from consumers that they want the freedom to choose how and when to pay - whether that’s paying now with debit or spreading the cost over time,” said David Sandstrom, CMO at Klarna. “This is the future of everyday banking — smart payments for smarter shoppers.”
With over 5 million already on the waitlist, Klarna is currently testing the product in the U.S. ahead of a broader rollout in the U.S. and Europe later this year.
The card includes:
• An FDIC-insured wallet
• Real-time transfers and deposits
• Seamless integration with Pay in 4 and Pay Later
“Millions of people around the world have embraced the choice and control offered by Visa’s Flexible Credential, and we’re delighted to extend this to even more U.S. consumers, as well as bringing it to Europe for the first time,” said Mathieu Altwegg, SVP at Visa Europe.
With this launch, Klarna continues its evolution into a global, digital-first neobank, combining spending, saving, and borrowing into a single, intuitive experience.
Read more global payment industry updates below 👇 and I'll be back with more tomorrow!
Cheers,
NEWS
🇬🇧 Payment insights that move the travel industry forward by CellPoint Digital. CellPoint's Insight Hub serves as a curated resource designed for industry executives, product leaders, and innovators shaping the future of travel commerce. It draws on the team’s collective expertise to offer practical insights into how orchestration, optimization, and operational control can drive tangible business outcomes.
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GOLDEN NUGGET
Welcome to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐀𝐜𝐚𝐝𝐞𝐦𝐲 by Checkout.com — Episode 16 👋 Created by Arthur Bedel
𝟑𝐃 𝐒𝐞𝐜𝐮𝐫𝐞 — The Authentication Layer in Card-Not-Present Transactions
3D Secure (3DS) is a security protocol developed by EMVCo to authenticate online cardholders in real time. It facilitates risk-based authentication between the issuer, merchant, cardholder, and Access Control Server (ACS)—creating an added layer of trust in card-not-present (CNP) transactions.
𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝟑𝐃 𝐒𝐞𝐜𝐮𝐫𝐞 𝐰𝐨𝐫𝐤?
3DS dynamically adapts to the transaction risk profile using one of two core flows:
1️⃣ 𝐅𝐫𝐢𝐜𝐭𝐢𝐨𝐧𝐥𝐞𝐬𝐬 𝐅𝐥𝐨𝐰
✔ No customer interaction
✔ The issuer’s ACS validates the cardholder silently using contextual signals (device ID, IP, geolocation, past behavior)
✔ Ideal for low-risk transactions and returning users
2️⃣ 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞 𝐅𝐥𝐨𝐰
✔ Issuer actively authenticates the cardholder
✔ Methods may include OTP, face ID, fingerprint, or app push notification
✔ Used when risk is elevated or regulatory thresholds require stronger SCA (e.g., PSD2 in Europe)
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐒𝐡𝐢𝐟𝐭?
When 3DS is applied (and the issuer approves the authentication), liability for fraud-related chargebacks shifts from the merchant to the issuer.
This is especially critical for:
→ High-value CNP transactions
→ Cross-border payments
→ SCA-mandated regions (e.g., EU, UK, India)
𝐒𝐭𝐚𝐧𝐝𝐚𝐥𝐨𝐧𝐞 𝟑𝐃𝐒 𝐯𝐬. 𝐏𝐒𝐏-𝐞𝐧𝐚𝐛𝐥𝐞𝐝 𝟑𝐃𝐒
📌 Standalone 3DS - Merchants directly integrate with a 3DS provider or ACS (VGS, Forter...)
→ Full control over routing, rules, and orchestration
→ More complex setup, ongoing maintenance, and liability handling
→ Best for technology-driven & enterprise merchants
📌 PSP-enabled 3DS - the PSP(Checkout.com, Adyen...) manages the 3DS flow
→ Simpler integration, streamlined performance
→ Embedded in the PSP’s payment flow
→ Built-in liability management and reporting
→ Less granular control over ACS selection or custom rule logic
→ Best for traditional merchants or start/scale-ups.
𝐖𝐡𝐲 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐭𝐬 𝐬𝐡𝐨𝐮𝐥𝐝 𝐜𝐚𝐫𝐞
► Seamless user experience with risk-based friction reduction
► Increased authorization rates through dynamic routing
► Fraud reduction + chargeback liability protection
► Regulatory compliance with PSD2, RBI, and global SCA mandates
Source: Checkout.com
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