Klarna Financial Services UK (KFSUK) has secured an authorisation from the UK’s Financial Conduct Authority (FCA) to operate as an Electronic Money Institution (EMI).  

With the authorisation in place, the company will introduce Klarna balance and Klarna cashback later in the year. 

The authorisation allows UK consumers to use Klarna balance to deposit and manage funds within a Klarna account, enabling them to add money from their debit card, make transactions using Klarna, and directly receive refunds.  

Additionally, a cashback initiative will be introduced, providing customers with the opportunity to earn rewards on their purchases made through the Klarna app. 

Klarna Cashback will offer users a percentage back on their spending, which will be credited to their Klarna balance.  

These funds can then be used for transactions at any merchant that accepts Klarna payments. 

Klarna Financial Services UK head Abby Vickers said: “This authorisation marks Klarna’s next big step in the UK—moving beyond flexible payments into everyday financial management.  

“While traditional banks are still playing catch-up, Klarna is giving consumers a smarter way to spend—and now, to manage their finances too. This is what modern money management looks like: manage, spend, and get rewarded—without the hassle.”   

In April this year, Klarna has put its planned initial public offering on hold in response to tariffs introduced by the US administration. The firm reported a net profit of $21m in 2024 as against a net loss of $244m in 2023.