Klarna applies for U.S. bank charter to expand beyond buy now, pay later
Swedish fintech Klarna has applied for a U.S. industrial bank charter in Utah, seeking FDIC approval to establish Klarna Bank USA. If granted, the subsidiary would offer checking accounts, credit cards, and fund loans via customer deposits, reducing reliance on partners like WebBank. The move follows a trend of fintechs pursuing bank charters under relaxed Trump-era regulations. Klarna, which went public in September 2025 at $40 per share (now trading at half that), has 119 million global users and is investing heavily in AI while cutting its workforce.
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Klarna applies for banking licence in US
Klarna, the Swedish buy-now-pay-later (BNPL) fintech, has applied for a US banking licence by filing applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). The company seeks approval to establish Klarna Bank USA as a Utah-chartered industrial bank, which would be a wholly owned subsidiary of Klarna and insured by the FDIC. The proposed bank would have an independent board, governance, and internal controls, allowing Klarna to bring its existing banking operations in-house. Klarna has held a banking licence in Europe since 2017 and currently serves US customers through partner banks. CEO Sebastian Siemiatkowski said the licence is a natural next step to offer fairer, more transparent financial tools. Klarna named Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank, as president and CEO of Klarna Bank USA. The firm reported that 30 million Americans use its services annually, and since 2019, it has provided over $91.3 billion in responsible credit, saving consumers more than $5.1 billion in interest compared to revolving credit card debt.
Yahoo FinanceKlarna seeks to disrupt US market with banking license and airline partnership
Swedish buy now, pay later giant Klarna is intensifying its push into the US financial market. The company applied for an industrial bank charter with the FDIC and Utah regulators, seeking greater control over its services after previously relying on partner banks like WebBank. Klarna already operates as a bank in Europe. Separately, Klarna announced a long-term partnership with Southwest Airlines to offer flexible payment options to US travelers, challenging traditional credit card loyalty programs. The US is Klarna's largest revenue market, and most of its investors are American. However, the company faces headwinds: its stock has lost about half its value since its 2025 IPO amid a fintech industry downturn. Analysts express skepticism about Klarna's ability to disrupt airline payments given deep ties between carriers and credit card rewards programs, though younger consumers may be more receptive.
Yahoo FinanceKlarna wants to become a bank. Here’s what that could mean for millions of customers.
Klarna, the Swedish 'buy now, pay later' fintech giant, has announced plans to establish a U.S.-based subsidiary called Klarna Bank USA. If approved by regulators, the FDIC-backed bank would be based in Utah. CEO Sebastian Siemiatkowski stated the move is about building trust and offering fairer, more transparent banking. The company has over 119 million global active users and processes over 3 million transactions daily. Klarna's IPO in September 2025 has seen shares lose over half their value. The company is also heavily investing in AI, reducing its workforce from 7,000 to 3,000 employees, with plans for further reductions. Klarna joins a wave of fintech and crypto firms, including Affirm, Ripple, and PayPal, seeking bank charters amid relaxed Trump administration regulations.
Yahoo FinanceKlarna seeks a bank license to directly rival US institutions
Klarna, the Swedish buy now/pay later lender, has applied for an industrial bank charter in Utah with the Utah Department of Financial Institutions and the FDIC. If approved, the new entity, Klarna Bank, would be led by Gary Harding, former chairman/CEO of Milestone Bank. The move would allow Klarna to bring banking operations in-house, reducing reliance on partners like WebBank and lowering capital costs. Klarna already holds a banking license in Sweden covering 23 European countries. The application follows a trend of fintechs like Affirm, PayPal, and Payoneer seeking bank charters under the Trump administration's favorable regulatory posture. Analysts note that building a deposit customer base reduces churn and makes Klarna a direct competitor to traditional banks rather than just operating like one.
Yahoo FinanceKlarna applies for US bank charter to expand beyond buy now, pay later
Swedish fintech Klarna announced it has applied for a US bank charter in Utah, seeking to establish an FDIC-insured subsidiary called Klarna Bank USA. The move represents a strategic shift from its core buy now, pay later business toward becoming a broader consumer bank. If approved, the charter would allow Klarna to fund loans with customer deposits, offer checking accounts and credit cards, and reduce reliance on third-party banking partners. The application follows a wave of fintech and crypto firms seeking direct entry into traditional banking, including Mercury's conditional approval earlier this year. Klarna's proposed bank would be led by Gary Harding, former CEO of Milestone Bank. The company recently introduced high-yield savings accounts through partner WebBank and went public last September, though its stock now trades at about half its $40 IPO price.
US Top News and AnalysisKlarna seeks U.S. bank charter to expand beyond buy now, pay later
Swedish fintech firm Klarna announced Monday it has applied for a U.S. bank charter in Utah, seeking to establish an FDIC-insured subsidiary called Klarna Bank USA. If approved, the move would allow Klarna to fund loans with customer deposits, offer its own checking accounts and credit cards, and reduce reliance on third-party banking partners. The application follows a broader trend of fintech and crypto firms pursuing in-house bank charters, such as Mercury's conditional approval earlier this year. Klarna recently launched high-yield savings accounts via a partner bank and went public last September at $40 per share, though its stock now trades at about half that. The proposed bank would be led by Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank. CEO Sebastian Siemiatkowski framed the move as a natural step toward offering fairer, more transparent banking services and increasing competition in the U.S. market.
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