Klarna, the Swedish fintech giant, has become one of the most widely recognized names in the UK payments sector. Known for its “Buy Now, Pay Later” (BNPL) model, deferred payments, and instant bank transfers through Sofort and open banking tools, Klarna has attracted millions of British users over the past few years.
The numbers tell the story:
- In 2024, Klarna surpassed 11 million active customers in the UK. Over the same year, the number of retail partners grew to approximately 60,000, almost doubling from the previous year.
- Klarna’s UK revenue increased by 30% year-on-year in 2024, marking one of its strongest performances to date. (Klarna Investors)
- The average BNPL debt among Klarna customers in the UK is around £150, compared to nearly £1,295 for traditional credit card users.
- Adoption among UK adults aged 18–64 has steadily increased in both point-of-sale (POS) and online payment categories between 2022 and 2025.
Klarna’s appeal lies in its convenience, interest-free repayment options, and integration with some of the UK’s biggest retailers — including eBay, John Lewis, Argos, and Eurostar. Many consumers also report that Klarna helps reduce reliance on credit cards, which typically carry higher fees and interest rates.
Regulation and Restrictions
Despite Klarna’s growth, its services are subject to strict regulatory oversight in the UK. A key restriction is that BNPL and other credit products cannot be used for gambling or betting purposes. This rule was introduced to protect consumers from risky financial behavior and potential debt accumulation linked to gambling.
However, Klarna does allow certain direct bank transfers through Sofort for payments, including in industries like gaming and entertainment, provided these do not involve credit. At the same time, banks and operators may impose “gambling blocks” to prevent transactions from reaching online casinos.
What Is Allowed and What Is Not
When it comes to online casinos, Klarna’s role is limited:
- Not allowed: BNPL services such as “Pay in 30 Days” or “Pay in 3” cannot be used for gambling deposits or wagers. These are classified as credit products and are legally prohibited in the gambling sector.
- Allowed with restrictions: Direct bank transfers via Sofort or other open banking services may be accepted, but they depend on the policies of both the casino and the user’s bank. If a gambling block is active, the payment will be automatically declined.
Impact on Online Gambling Operators
For online casinos and betting platforms, this regulatory framework means they cannot legally advertise Klarna BNPL options for deposits. Instead, the only viable Klarna payment method is instant bank transfer, which may or may not be available depending on licensing and financial agreements.
For players, Klarna offers convenience when making instant deposits through open banking, but users must be aware that credit-based Klarna services are off-limits. This ensures responsible play and prevents individuals from borrowing money to gamble.
Why Klarna Matters for the Future of Gambling Payments
The intersection of fintech and online gambling is becoming increasingly relevant as players seek fast, secure, and transparent payment methods. Klarna’s ability to offer frictionless bank transfers aligns with these demands, while its prohibition of credit-based gambling transactions demonstrates a commitment to responsible gaming.
This approach has also shaped the way online operators present payment options, with a growing number of platforms highlighting themselves as Klarna casinos in UK — meaning they support instant deposits via bank transfer rather than risky credit-based services.
The UK Gambling Commission (UKGC) has already imposed strict rules on the use of credit cards for gambling, and Klarna’s policies mirror this approach. By allowing instant bank payments but banning credit-based gambling, Klarna positions itself as both a modern payment solution and a safeguard for financial wellbeing.
Is Klarna Leading the Future of Payments and Play?
Klarna has firmly cemented itself as a key player in the UK payments landscape, with millions of active users and strong partnerships across retail. Its impact goes beyond shopping: even in the online gambling space, Klarna’s instant bank transfers offer a fast and secure way to deposit funds — all while maintaining responsible payment practices.
For British consumers, Klarna represents more than convenience; it signals a shift toward flexible, mobile-first money management. As fintech continues to evolve, Klarna is poised to shape how people shop, pay, and even play, balancing innovation with regulation.
