Klarna Applied for U.S. Banking License the Company's Boldest Move in America

Swedish company Klarna, one of the world's largest "buy now, pay later" (BNPL) services, has filed an application with U.S. regulators to open its own bank — the corresponding filing was submitted to the state of Utah, reports tech.eu.

Why Klarna Needs a Banking License in the U.S.

Klarna has long positioned itself not only as a payment installment service but as a full-fledged fintech player, and the banking license application is a logical step in that direction. The company is betting that Washington's more fintech-friendly policies will now open the door for it to enter the American market, where other European fintech companies have previously stumbled when trying to establish themselves in the U.S.

• Banking license application filed with Utah state regulators
• Klarna is a Swedish BNPL ("buy now, pay later") market giant
• The company is banking on more favorable fintech policies in Washington
• Other European fintech companies have previously struggled on the U.S. market
• Source of information — tech.eu publication

Why

This Is Called Klarna's Boldest Move in America Right Now

An application for its own banking license is a far more fundamental step than partnerships with existing banks, on which BNPL services typically build their payment products. Obtaining its own license would mean that Klarna could operate in the U.S. as an independent regulated bank, not just as an intermediary dependent on partner banks. This is precisely why sources call this Klarna's boldest move in its entire history of presence in America.

What It Means

If the application is approved, Klarna would gain a status in the U.S. comparable to what already allows it to operate as a bank in Europe — and would be able to rely on its own regulatory foundation instead of partner banking schemes, thereby reducing its dependence on third parties in one of the world's most competitive fintech markets.