Klarna's biggest move yet: From BNPL to full-service banking

Klarna is making one of its boldest strategic moves yet.

The Swedish fintech, best known for popularizing buy now, pay later (BNPL), has officially applied for a U.S. bank charter. If regulators approve the application, the company will establish Klarna Bank USA, an FDIC-insured banking subsidiary based in Utah.

While the headline may sound like a regulatory milestone, the implications are much bigger.

For years, most fintech companies have relied on partner banks to power everything from deposits to lending. That model helped them scale quickly without taking on the complexities of running a bank. Now, that approach is beginning to change.

A banking license would allow Klarna to bring much of its financial infrastructure in-house. Instead of depending on external banking partners, the company could fund loans using customer deposits, expand into traditional banking products, and gain greater control over payments, lending, and merchant services.

CEO and co-founder Sebastian Siemiatkowski described the move as the natural next step in Klarna's U.S. journey, saying the company wants to offer customers more transparent financial products while increasing competition and innovation in the market.

The application also highlights a broader trend across the fintech industry.

More digital financial companies are beginning to see bank charters as a long-term competitive advantage rather than a regulatory burden. Earlier this year, fintech firm Mercury also received conditional approval to establish its own bank, signaling growing interest from technology-first financial companies in owning regulated banking infrastructure.

Keep up with AI in 5 minutes a day

Keep up with AI in 5 minutes a day. MavSource aggregates updates from all major AI newsletters, podcasts, companies, AI labs, and hundreds of other sources — then summarizes the key updates and analyzes the trends shaping AI. Free. Daily.

Get the free brief →

For Klarna, this is another step in its evolution from a single-product fintech into a broader consumer banking platform.

Just weeks ago, the company launched high-yield savings accounts for U.S. customers. While those accounts are currently offered through banking partner WebBank, a successful charter would eventually allow Klarna to provide similar services directly under its own banking entity.

The financial benefits are significant. Access to customer deposits creates a lower-cost source of funding compared with wholesale borrowing. It also opens the door to products like checking accounts, debit and credit cards, and deeper customer relationships that extend well beyond installment payments.

The timing is notable.

Klarna went public in September 2025 with an IPO price of $40 per share. Since then, the stock has fallen to roughly half of that value, making this strategic expansion even more important as the company looks to diversify revenue, strengthen its business model, and reassure investors about its long-term growth story.

Why it matters: Fintech's next growth phase may not be about launching the next flashy financial product. It may be about becoming a bank. Klarna's application reflects a broader industry shift where owning the underlying banking infrastructure is increasingly viewed as a strategic advantage rather than just a regulatory milestone.