Klarna wants to be a real American bank. The Swedish BNPL giant has applied for a US banking licence, betting a friendlier Washington will let it crack a market that has bruised European rivals.
Klarna has applied to US regulators to set up its own bank, tech.eu reports. The Swedish fintech filed with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to launch Klarna Bank USA, an FDIC-insured institution. If approved, a former Milestone Bank chief, Gary Harding, would run it, according to CNBC.
From BNPL to full bank
Klarna already holds a European banking licence, which its finance chief once called one of its biggest advantages. In the US, it has leaned on partner banks instead. It recently launched high-yield savings there, but WebBank, not Klarna, holds the deposits. A US charter would change that.
Owning a bank lets Klarna fund loans with customer deposits rather than pricier wholesale money. It could offer checking accounts and credit cards directly, and pull payments, lending and merchant services in-house. The prize is a cheaper, more self-reliant American business.
