Smart spending: why Italians are ready for a new kind of card
Italia has always had a practical and informed relationship with money. Today, a new generation of payment methods is tapping into this very pragmatic approach, offering greater flexibility where debit cards fall short, without, however, repeating the typical pitfalls of traditional credit
You only have to ask Italians what they think of credit cards to get a fairly telling reaction. It’s not exactly hostility, but rather a sense of mistrust that feels almost instinctive. The figures confirm this: in 2024, there were fewer than 21 million credit cards in circulation in Italia, compared with almost 65 million debit cards, whilst the number of credit cards has been falling steadily for over ten years. Many Italians are consciously choosing to move away from them.
It is not difficult to understand why. Credit cards come with conditions that many consumers have rightly learnt to view with caution: revolving credit that carries over from one month to the next, interest that accrues silently, and hidden costs buried in terms and conditions that require a real effort to understand. According to Klarna data, 44% associate credit cards with the risk of debt, 33% cite high interest rates and 25% point to hidden fees. For a culture that has always valued clarity in money management, the credit card has simply never been an entirely natural choice.
The debit card: a reliable tool, but with limited advantages
The alternative chosen by most Italians is the debit card. Simple, transparent, and directly linked to the funds available in the account. Almost half of those surveyed in the Klarna survey, 48%, say they prefer it to a credit card precisely because it helps keep spending under control.
The debit card, however, has a clear limitation. It works perfectly for everyday purchases, but that’s where it stops. When a larger expense arises, it offers no flexibility, nor the benefits that credit cards usually include, such as cashback or discounts.
And larger expenses come up more often than one might expect. Some can be planned for: a summer holiday, back-to-school expenses in September, a new household appliance. Others, however, are not: in the last twelve months alone, 29% of Italian consumers surveyed had to deal with an unexpected healthcare expense, whether it was a dentist, a specialist or a physiotherapist. 27% incurred car-related costs they hadn’t budgeted for. 23% faced an urgent home repair. The common thread running through these situations is not the inability to pay – most households manage to cover them – but the concentration of expenditure at a single point in time.
When asked what the ideal way to manage these situations would be, 43% of respondents said they would choose interest-free instalments, a significantly higher proportion than those who would opt for a credit card (26%). The desire for greater flexibility is therefore clear. What has been missing, until now, was a way to access it without the conditions that traditionally come with it.
A card that combines control and flexibility
The Klarna Card was created precisely to fill this gap. Available in both physical and digital formats, compatible with Apple Pay and Google Pay, and available to apply for directly via the Klarna app, it works like a standard debit card for everyday purchases. When a larger purchase arises, the same card allows you to split the cost into three interest-free instalments, directly via the app. You can see every upcoming payment before it is debited, so there are no surprises. No revolving balance, no interest, no hidden costs.
The instalment payment option is not a credit product in the traditional sense, but a cash flow management tool. A €600 dentist’s bill, split over three months, costs exactly €600. The only thing that changes is when you pay, which is often exactly what you need.
“Italians have always been financially savvy consumers,” says Luigi Traldi, Head of Southern Europe at Klarna. “They chose debit cards because the alternatives came with terms and conditions they rightly didn’t trust. With the Klarna Card, we offer something different: the control they already appreciate, combined with the flexibility that was previously only available at a cost. But it’s not just about payments. We want to help Italian consumers move from a card used solely as a transaction tool to one that truly works in their favour, with cashback, interest-free instalments, lounge access and subscription benefits that reward every purchase. Transparently, interest-free and always in the consumer’s hands.”
The model is designed to operate responsibly. Instead of assigning a standard credit limit, Klarna performs a real-time affordability check on every single transaction, granting payment options only when the data permits. The result speaks for itself: globally, less than 1% of Klarna payments are settled late. Flexibility is not a shortcut, but a carefully managed option.
The perfect companion for summer spending
There are times when this kind of flexibility is particularly useful, and the run-up to summer is one of them. Holiday expenses tend to be concentrated in a few key moments: flights booked months in advance, deposits for accommodation, car hire, and excursions. For many families, it is not so much the total amount that strains the budget, but the timing of the expense. According to Klarna data, summer holidays represent a significant expense for Italian consumers, with more than one in five people planning to spend over a thousand euros per person.
The Klarna Card, with no fees on foreign currency transactions, travels with its holder. A flight booked in April, split into three payments. A deposit for the hotel in May, handled in the same way. Full visibility of what will be paid and when, all in a single app. Fewer financial hassles, more time to think about your next destination.
And for frequent travellers, Klarna Max takes the card to the next level. At a cost of €34.99 per month, with no long-term commitments and the option to upgrade or downgrade at any time, the subscription includes comprehensive travel insurance, covering cancellation for any reason, unlimited access to over 1,800 airport lounges worldwide, and 1% cashback convertible into air miles or hotel points with partners such as Air France-KLM and Accor. Benefits once reserved solely for premium credit card holders are now available for a transparent monthly fee with no associated debt.
