The Swedish fintech aims to launch Klarna Bank USA, enabling in-house banking operations and direct customer lending in the US market.
Klarna has filed applications with the Utah Department of Financial Institutions and the FDIC to establish Klarna Bank USA, a Utah-chartered industrial bank. The move would allow the buy-now-pay-later firm to operate its own banking services in the US, replacing its current reliance on partner banks.
The company has held a European banking license since 2017 and has facilitated over $91.3bn in credit for US customers since 2019, helping them save $5.1bn in interest. Klarna Bank USA would operate as a wholly owned subsidiary with independent governance.
Approval would enable Klarna to offer more competitive financial products, increasing competition in the US banking sector. The firm has appointed Gary Harding, former CEO of Milestone Bank, to lead the new entity.