The “buy now, pay later” fintech giant Klarna wants to become a real bank.
The Swedish company just announced its plans to establish a U.S.-based subsidiary known as Klarna Bank USA. If approved, the FDIC-backed bank would set up shop out of Utah.
“Banking is built on trust,” Klarna CEO and cofounder Sebastian Siemiatkowski said in the announcement. “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.”
With a proper bank, Klarna says it can give users tools to “borrow responsibly” and build their financial confidence while injecting more competition and innovation into the banking sector. The company named Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank, as its future chief executive.
Klarna has more than 119 million global active users and over 3 million transactions per day, according to its most recent estimates. Its major retail partners include H&M, Saks Fifth Avenue, Sephora, Macy’s, Ikea, Expedia Group, Nike, Uber, and Airbnb. In Europe, the fintech firm already operates as a fully licensed bank with broader lending and banking options than its current product in the U.S. Since Klarna’s IPO in September 2025, its shares have lost more than half of their value.
Klarna eyes the future
Klarna has been all in on AI, shrinking its workforce and leaning more on automated systems rather than human employees. In February, Klarna said it employed around 3,000 workers—down from 7,000 four years prior—and planned to reduce that number by another third in the coming years through natural attrition rather than rounds of layoffs.
The company is just the latest fintech upstart looking to get into the traditional banking game. As the Trump administration relaxes historically strict regulations governing the banking industry, upstarts from the crypto and tech world have flooded in, seeking the many perks of a bank charter. The startup-focused fintech Mercury is in the process, as are dozens of other nontraditional companies that have recently applied to become banks. That list includes Klarna’s pay-later competitor Affirm, crypto firm Ripple, and Paypal—and even automakers like Ford, GM, and Stellantis.