Klarna seeks U.S. bank charter in latest push beyond buy now, pay later

Klarna seeks U.S. bank charter in push beyond buy now, pay later. Buy now, pay later pioneer Klarna applied to establish an FDIC-insured U.S. bank in Utah, a move that would allow the Swedish fintech to operate its own American banking subsidiary if approved. The filing signals a broader shift among fintech firms toward owning bank charters rather than relying on partner banks, following conditional approval earlier this year for fintech Mercury to establish its own bank. A bank charter would let Klarna fund loans with customer deposits, expand traditional banking products and bring more of its payments, lending and merchant operations in-house, reducing its dependence on third-party banking partners. Klarna , the Swedish fintech firm best known for its buy now, pay later offerings, said Monday it applied to federal and state regulators to establish a U.S. bank subsidiary. The firm said that, if approved, Klarna Bank USA would be a Federal Deposit Insurance Corporation-backed institution chartered in Utah. The proposed bank would be led by Gary Harding , former CEO of Milestone Bank and Prime Alliance Bank, according to 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," said Sebastian Siemiatkowski, co-founder and CEO of Klarna. The move will give "customers tools to borrow responsibly and build financial confidence, while bringing greater competition, innovation, and choice" to the market, he said. Klarna's application is the latest sign that f...