Klarna has applied for a US banking licence, filing applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC).
The Swedish buy-now-pay-later (BNPL) outfit is seeking approval to launch Klarna Bank USA as a Utah-chartered industrial bank.
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If approved, Klarna Bank USA would be a wholly owned subsidiary of Klarna. It would be insured by the FDIC.
The proposed bank would have its own independent board, governance and internal controls.
The licence would allow 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.
The fintech firm said it would work closely with regulators during the application process.
Klarna co-founder and CEO Sebastian Siemiatkowski said: “We’ve seen firsthand the appetite for a fairer, more transparent approach in the U.S., and our own banking licence 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.”
Klarna has named Gary Harding as the president and CEO of Klarna Bank USA.
Harding was formerly the chairman and CEO of Milestone Bank, and president and CEO of Prime Alliance Bank.
Klarna said that since 2019 it has provided Americans with access to more than $91.3bn in responsible credit, while helping them save more than $5.1bn in interest compared with revolving credit card debt.
It added 30 million Americans use its services each year and that hundreds of thousands of merchants rely on its platform.
