Klarna, the global digital banking and payments innovator, has received official authorisation from the UK’s Financial Conduct Authority (FCA) to operate as an Electronic Money Institution (EMI). This milestone enables Klarna Financial Services UK (KFSUK), the company’s dedicated UK entity, to roll out two major features—Klarna Balance and Klarna Cashback—to its 11 million UK customers later this year.

Already available in the US and 14 European markets, Klarna Balance will allow UK users to manage funds directly within their Klarna account. Customers can top up their balance via debit card, shop using Klarna, receive refunds, and earn cashback—all within a single, streamlined platform.

The new Klarna Cashback feature offers up to 10% cashback on purchases made through the Klarna app. Unlike traditional rewards programs, this cashback is credited directly to the user’s Klarna Balance, ready to be spent anywhere Klarna is accepted—no points, no gimmicks.

“This FCA authorisation marks Klarna’s evolution from a flexible payments provider to a full-fledged financial management platform,” said Abby Vickers, Head of Klarna Financial Services UK. “While legacy banks are still catching up, Klarna is empowering consumers with smarter tools to manage, spend, and earn—effortlessly.”

The regulatory green light not only strengthens Klarna’s UK operations but also sets the stage for future product innovations. As Klarna continues to challenge traditional banking norms, it positions itself as a comprehensive solution for everyday spending and saving.

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