Swedish fintech giant Klarna has applied for a U.S. banking license, marking a major step in its strategy to evolve from a Buy Now, Pay Later (BNPL) provider into a full-service digital financial institution.
The company has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish Klarna Bank USA, which would operate as an FDIC-insured bank with its own governance structure and regulatory oversight.
Building a broader banking platform
Klarna said obtaining a U.S. banking license would allow the company to bring more of its banking operations in-house, strengthening its capabilities across payments, savings, lending, and merchant services.
The move would also reduce reliance on third-party banking partners while giving Klarna greater control over its financial infrastructure as it continues expanding its product offering in the United States.
The company already operates a licensed bank in Europe, where it has held a banking license since 2017.
Expanding beyond BNPL
While Klarna remains one of the world’s largest Buy Now, Pay Later providers, the company has increasingly diversified its business beyond installment lending.
In recent months, Klarna has expanded into debit cards, digital payments, and stablecoin initiatives as part of a broader effort to build a comprehensive consumer finance platform.
The company recently surpassed one million registrations for its U.S. debit card and has also announced plans to enter the peer-to-peer (P2P) payments market.
These initiatives reflect Klarna’s ambition to compete more directly with digital banking platforms by offering a wider range of everyday financial services.
Strengthening its U.S. presence
Klarna currently serves around 30 million U.S. customers and says it has provided more than $91 billion in credit to American consumers since 2019.
To lead the proposed U.S. banking entity, the company has appointed Gary Harding, a banking executive with leadership experience at Milestone Bank and Prime Alliance Bank.
According to Klarna, establishing its own regulated U.S. bank would support long-term growth while providing customers with greater transparency, reliability, and access to modern banking products.
Digital banks continue challenging traditional finance
Klarna’s banking license application reflects a broader trend across the fintech industry, where leading digital finance companies are increasingly pursuing banking licenses to expand their product offerings and strengthen regulatory positioning.
Rather than focusing solely on payments or lending, many fintechs are evolving into full-service financial platforms that combine banking, credit, savings, cards, and digital payment services under a single ecosystem.
If approved, the license would represent another major milestone in Klarna’s transformation from a BNPL provider into a fully integrated digital bank.
