Swedish banking giant Klarna submits applications to establish Utah bank
Buy now, pay later giant seeks a Utah industrial bank charter and FDIC insurance
Klarna, a global digital bank and flexible payments provider, has announced it has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corp. (FDIC) to establish Klarna Bank USA, a proposed Utah-chartered industrial bank.
Klarna has operated as a licensed bank in Europe since 2017 and serves U.S. customers through partner banks, such as Salt Lake City-based WebBank. Since 2019, Klarna has made more than $91.3 billion in loans through those banks to 30 million Americans. Hundreds of thousands of U.S. businesses also use Klarna services.
"Banking is built on trust," said Sebastian Siemiatkowski, co-founder and CEO of Klarna. "We've seen firsthand the appetite for a fairer, more transparent approach in the U.S., and our own banking license 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."
If regulators give it the green light, Klarna Bank USA would be a wholly owned subsidiary of Klarna Inc., chartered in Utah and insured by the FDIC, with its own independent board, governance and internal controls. The charter would let Klarna bring its existing banking operations in-house, strengthening reliability across payments, savings, credit and merchant services, and supporting sustainable growth, the bank said in its announcement.
Gary Harding has been named president and CEO of Klarna Bank USA. Harding brings over a decade of C-suite leadership across the U.S. financial sector, having served as chairman and CEO of Milestone Bank and president and CEO of Prime Alliance Bank.
Klarna said it will work closely with regulators throughout the application process, consistent with its long-standing commitment to regulatory engagement, to deliver a modern, transparent banking experience for Americans.
Klarna is a major player in the "buy now, pay later" banking model. It has over 119 million global active Klarna users and makes 3.4 million transactions per day. Klarna serves customers of firms like Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. It employs about 4,000 people worldwide. Klarna is listed on the New York Stock Exchange under the stock symbol KLAR.
