Payward secures EU banking passport via Saldo acquisition

Financial infrastructure firm Payward has entered a definitive agreement to take full ownership of Saldo Finance Oy, the Finnish parent entity of Saldo Bank.

Financial details of the transaction remain undisclosed.

The takeover is scheduled to conclude in 2027, contingent upon customary closing requirements and authorisations from regulatory bodies.

Saldo Bank operates as a digital-first specialised bank under a licence from Lithuania, holding regulatory passporting rights that span five European jurisdictions: Lithuania, Finland, Sweden, Germany, and the Netherlands.

Across each of these territories, the institution accepts retail term deposits.

Its credit operations comprise consumer loans across Lithuania, Finland, and Sweden, alongside secured and unsecured SME loans in Lithuania and Finland.

The bank has also deployed a credit card in Finland, with an entry into the Swedish market planned for 2027.

In addition to customer-facing services, the entity maintains direct integration with SEPA payments and provides embedded lending facilities to third-party fintech companies located in Germany and Finland.

Through this acquisition, Payward intends to advance Payward Banking, which functions as the money layer for its broader infrastructure platform.

To date, Payward Banking has originated more than $2bn in credit.

Its existing regulatory baseline includes an EMI licence granted by the Central Bank of Ireland, as well as a Federal Reserve limited-purpose master account.

Payward co-CEO Arjun Sethi said: “A regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should: one place to hold assets, move them freely, and put them to work. We believe whoever owns that relationship earns the right to serve everything around it. We are starting in the EU, and the ambition is global.”

Following receipt of the necessary regulatory clearances, Payward Banking plans to merge Saldo Bank’s operations into its ecosystem.

 This integration will enable the provision of deposit-interest arrangements, direct credit facilities, and banking-as-a-service functionalities across Europe.

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Saldo Bank president Jarkko Mäensivu said: “Payward has spent years assembling regulated infrastructure across the US and Europe. Saldo Bank’s infrastructure was built to be Europe-wide, enabling innovative banking solutions including embedded services for other fintechs.

“Combining these capabilities with our five-market footprint means far more customers can access the full range of what both businesses offer – banking, payments, and lending in one place.”