Klarna Seeks U.S. Bank Charter in Utah, Expanding Beyond BNPL After Shares Halved
Updated
Updated · CNBC · Jul 6
Klarna Seeks U.S. Bank Charter in Utah, Expanding Beyond BNPL After Shares Halved
3 articles · Updated · CNBC · Jul 6
Summary
Klarna said Monday it has applied to federal and state regulators to create Klarna Bank USA, an FDIC-backed Utah-chartered bank if approved.
The charter would let Klarna bring payments, credit and merchant services in-house, fund loans with customer deposits and cut reliance on partner banks and wholesale financing.
Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank, is slated to lead the proposed subsidiary as Klarna pushes deeper into consumer banking.
The filing follows Klarna's June launch of U.S. high-yield savings accounts through partner WebBank and adds to a broader fintech shift toward owning bank charters after Mercury won conditional approval in April.
Klarna, which went public last September, is trading at about half its $40 IPO price as it tries to diversify beyond buy now, pay later.
Can Klarna's 'fairer banking' promise overcome the risks of its buy-now-pay-later model as it becomes a real U.S. bank?
By using a Utah bank charter, is Klarna unlocking a regulatory backdoor to compete with America's biggest banks?
Klarna Applies for U.S. Bank Charter in 2026: Growth Strategy, Industry Shifts, and Regulatory Hurdles
Overview
On July 6, 2026, Klarna submitted applications to federal and state regulators to establish Klarna Bank USA, a new FDIC-backed institution based in Utah. This move marks Klarna’s shift from a buy now, pay later provider to a full consumer bank. Klarna Bank USA will operate as a distinct subsidiary with its own leadership, including Gary Harding as CEO, and an independent board to ensure regulatory compliance and operational autonomy. By creating this new bank, Klarna aims to bring its core banking operations in-house, strengthen its services, and offer a more transparent approach to American consumers.