The Swedish fintech aims to launch an FDIC-backed Utah bank, enhancing its ability to offer credit and payment tools in-house.
Klarna has filed applications with federal and state regulators to establish Klarna Bank USA, an FDIC-insured institution chartered in Utah. The move would allow the company to operate its own banking subsidiary, reducing reliance on third-party partnerships for credit and payment services.
The proposed bank, led by former Milestone Bank CEO Gary Harding, follows a broader trend of fintech firms seeking direct access to the U.S. banking system. In April, Mercury received conditional approval for its own charter, signaling growing competition in the sector. Klarna’s shift reflects its ambition to evolve from a buy now, pay later provider into a full-service consumer bank.
Approval would enable Klarna to integrate banking operations internally, improving reliability across its platform. The company cited demand for transparent financial tools as a key driver behind the application, positioning the charter as a step toward greater market competition and innovation.