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The Application
Swedish fintech seeks FDIC-insured bank charter
Klarna, the Swedish buy-now-pay-later (BNPL) giant, has applied for a US banking licence, marking its most ambitious push into the American market. The company filed with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish Klarna Bank USA, an FDIC-insured bank. If approved, the bank would be led by Gary Harding, a former chief of Milestone Bank, according to CNBC.
Klarna already holds a European banking licence, which its finance chief has described as a major competitive advantage. In the US, it has relied on partner banks such as WebBank to offer services like high-yield savings accounts, meaning Klarna did not directly hold customer deposits. A US charter would change that, allowing Klarna to fund loans with deposits rather than more expensive wholesale funding, and to offer checking accounts and credit cards directly.
Strategic Context
Why now? A friendlier Washington and a push for self-reliance
Klarna’s move comes as European challenger banks increasingly seek US charters, betting that the regulatory environment under the Trump administration is more open to foreign entrants. Revolut applied for a US charter in March, Dutch challenger Bunq refiled its application this year, and fintech Mercury won conditional approval in April. Owning a charter, once a burden many fintechs avoided, is now seen as a strategic edge.
Klarna co-founder and CEO Sebastian Siemiatkowski framed the application as a trust-building measure. “Banking is built on trust,” he said, calling an own licence “the natural next step.” The company has already built a significant US presence, claiming over 30 million customers, a US debit card, and more than $93 billion in credit extended. However, the US market has historically been tough for European fintechs: Monzo exited the US to focus on Europe, and Klarna’s own shares trade near half their September IPO price, reflecting investor demand for discipline.
Implications and Risks
A deeper American bet amid market uncertainty
If granted, a US banking licence would allow Klarna to bring payments, lending, and merchant services in-house, reducing reliance on third-party partners and potentially lowering costs. This could strengthen its competitive position against US rivals like Affirm and Afterpay, which already operate with their own lending infrastructure.
Yet the path is not without risks. US banking regulation is complex and can impose higher capital and compliance costs. Klarna’s application faces scrutiny from both state and federal regulators, and approval is not guaranteed. Moreover, the company’s stock performance and the broader pullback in fintech valuations suggest that investors are watching for profitability, not just growth. A banking licence would deepen Klarna’s commitment to the US at a time when market conditions remain uncertain.
What’s Next
Regulatory review and the broader trend
Klarna has filed its application, but the timeline for a decision remains unclear. Regulators will assess the company’s financial health, governance, and ability to comply with US banking laws. The outcome could signal whether the US is indeed opening its doors to European fintechs or if barriers remain.
For now, Klarna is joining a small but growing wave of challengers seeking US charters. If successful, it would not only transform its own American operations but also set a precedent for other European fintechs eyeing the world’s largest banking market.
Based on reporting from thenextweb.com
