Klarna applies for US banking licence

Klarna, the Swedish financial company best known for its BNPL (Buy Now, Pay Later) products today said it had applied for a US banking licence. Klarna, which is listed in the US, has been making a big play in the US, where it says it now has over 30m customers and its services include a US debit card. The US banking market has proved a tough nut to crack for European entrants.

However, President Trump’s administration is seen as more open to new entrants in the market. The fintech said it had applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to set up Klarna Bank in the US. In the US, Klarna has until now served banking services to its US customers through partner banks.

It says it has provided Americans with access to over $93.1bn in credit. Acquiring a US banking licence would mean it could provide these services itself.

It would mean Klarna, which has a European banking licence, for example, could offer credit products itself.. Sebastian Siemiatkowski, co-founder and CEO of Klarna, said: "Banking is built on trust. We've seen first-hand the appetite for a fairer, more transparent approach in the US, and our own banking licence is the natural next step, giving customers tools to borrow responsibly and build financial confidence, while bringing greater competition, innovation, and choice to consumers and merchants alike."

In March this year. Revolut applied for a US banking licence, while Bunq, the Dutch challenger bank, also reapplied for a US banking licence earlier this year. Klarna's push in the US has included partnering up with NBA legend Shaquille O'Neal on an advertising campaign.