Swedish fintech Klarna has applied for an FDIC-insured bank charter in Utah to establish Klarna Bank USA, aiming to expand its footprint beyond its well-known buy now, pay later services. If approved, this move would allow Klarna to operate its own American banking subsidiary, giving it the ability to provide a wider range of traditional banking products while enhancing control over its payments, lending, and merchant services. The proposed bank would be led by Gary Harding, who previously served as CEO for Milestone Bank and Prime Alliance Bank.

This application reflects a growing trend among fintech companies seeking to own their banking charters rather than relying on partnerships with existing banks. Earlier this year, fintech firm Mercury received conditional approval to operate as an independent bank, signaling a shift in the fintech industry’s approach to entering the traditional banking system. By holding a bank charter, Klarna aims to strengthen its operational reliability and reduce dependence on third-party banking partners.

Klarna’s move follows its recent launch of high-yield savings accounts in the U.S., which are currently held by its partner WebBank. By securing its own charter, Klarna would be able to fund loans directly with customer deposits, a funding method that is typically less expensive than wholesale financing. This transition also opens the door for Klarna to offer checking accounts, credit cards, and various other deposit products under its own banking umbrella.

Since going public in September 2025 at an initial share price of $40, Klarna’s stock has declined to about half that value. Despite this, CEO Sebastian Siemiatkowski emphasized that obtaining a banking license is the natural progression for the company, promising consumers tools to borrow responsibly and fostering greater competition and innovation in the U.S. financial market. The bank charter application marks another significant milestone in Klarna’s bid to evolve into a full-service consumer bank.