Klarna Files for U.S. Banking License, Eyes Utah Charter | LeapRate
Klarna (NYSE: KLAR), the global digital bank and flexible payments provider, has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish Klarna Bank USA, a proposed Utah-chartered industrial bank.
The Swedish fintech has operated as a licensed bank in Europe since 2017, but in the U.S. it has relied on partner banks to serve customers. Since 2019, Klarna has extended over $91.3 billion in credit to American consumers, saving them more than $5.1 billion in interest compared to revolving credit card debt. The company says 30 million Americans use its services annually, alongside hundreds of thousands of merchants.
Sebastian Siemiatkowski, co-founder and CEO of Klarna, said the move reflects growing demand for a more transparent alternative to traditional credit products in the U.S. “Our own banking license is the natural next step, giving customers tools to borrow responsibly and build financial confidence, while bringing greater competition, innovation, and choice to consumers and merchants alike,” he said.
If regulators approve the application, Klarna Bank USA would operate as a wholly owned subsidiary of Klarna Inc., with its own board and governance structure, and FDIC insurance. The charter would allow Klarna to bring existing banking functions in-house, covering payments, savings, credit and merchant services.
Gary Harding, formerly Chairman and CEO of Milestone Bank and President and CEO of Prime Alliance Bank, has been named President and CEO of Klarna Bank USA.
The company said it will work closely with regulators throughout the review process.
