Klarna Seeks US Banking License in Utah

Klarna, the buy now, pay later fintech company, announced its intention to become a fully licensed bank in the United States by establishing a U.S.-based subsidiary named Klarna Bank USA. If approved, this FDIC-backed institution would operate out of Utah. Klarna CEO and co-founder Sebastian Siemiatkowski stated that obtaining a banking license is a natural progression, aiming to offer users tools for responsible borrowing and to foster greater competition and innovation within the U.S. banking sector. The company has appointed Gary Harding, formerly the CEO of Milestone Bank and Prime Alliance Bank, as the prospective chief executive for Klarna Bank USA.

Globally, Klarna serves over 119 million active users, processing more than three million transactions daily. Its extensive network of retail partners includes major brands such as H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike, Uber, and Airbnb. In Europe, Klarna already operates as a fully licensed bank, providing a wider array of lending and banking services than currently available in its U.S. offerings. The company's move towards a banking license follows its IPO in late 2025, after which its share value has reportedly decreased by approximately half.

Klarna has significantly invested in artificial intelligence, leading to workforce reductions and the integration of automated systems. As of February, the company reported employing around 3,000 individuals, a substantial decrease from 7,000 four years prior, with plans to further reduce its headcount by a third in the coming years. Despite its strong emphasis on AI, Klarna has made adjustments to some of these changes after experiencing a decline in customer satisfaction, a challenge that has impacted several companies recently.

Klarna is among a growing number of fintech companies seeking to enter the traditional banking landscape. This trend is occurring amidst a period where the Trump administration has been noted for relaxing regulations previously considered strict for the banking industry, creating opportunities for new entrants from sectors like cryptocurrency.