Klarna Applies for a US Banking Licence: Its Boldest Move Yet
Klarna has applied to Utah and federal regulators to launch Klarna Bank USA, an FDIC-insured bank, marking its most ambitious American move yet. The Swedish BNPL giant aims to establish itself as a full-fledged US bank, capitalizing on what it believes is a shifting regulatory landscape.
From BNPL to Full Banking Services
Currently, Klarna holds a European banking licence, but in the US, it has relied on partner banks for its operations. It recently launched high-yield savings accounts, with WebBank handling the deposits. Obtaining its own US charter would enable Klarna to fund loans using customer deposits, offer checking accounts, credit cards, and internalize payment processing.
Joining a Crowd of Fintechs Seeking Charters
Klarna is joining a growing list of fintechs vying for US banking charters. Revolut applied in March, while Dutch challenger Bunq refiled this year. Mercury won conditional approval in April. Owning a charter has become an attractive proposition, and Klarna attributes this shift to a more welcoming regulatory environment under the Trump administration.
A Challenging Market
Despite its significant presence in the US with over 30 million customers and $93 billion in credit extended, Klarna faces challenges. Monzo quit the US market to focus on Europe, and Klarna’s shares trade at a fraction of their IPO price. Obtaining a banking licence is a strategic move to deepen its American footprint during a time when investors demand discipline.
The Future Depends on Regulators
Klarna has submitted the necessary paperwork, but whether it gains approval remains to be seen. The success of its bid will hinge on building trust with regulators and demonstrating the benefits of its entry into the US banking market.