Key Takeaways:
Klarna applied to the Utah Department of Financial Institutions and the FDIC on July 6 to establish Klarna Bank USA, a Utah-chartered industrial bank.
A US bank charter would let Klarna fund loans with customer deposits and bring payments, savings, and credit products in-house.
Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank, has been named to lead the proposed bank.
Klarna announced on July 6 that it has applied to the Utah Department of Financial Institutions and the FDIC to establish Klarna Bank USA, a Utah-chartered industrial bank, CNBC reported. The move is the buy now, pay later company's clearest step yet toward becoming a full consumer bank in its largest market.
The proposed bank would be a wholly owned subsidiary of Klarna with its own board and governance, insured by the FDIC, according to the company's SEC filing. Gary Harding, who previously ran Milestone Bank and Prime Alliance Bank, would serve as its CEO.
Why Klarna Wants a US Banking License
A charter changes the economics. Klarna could fund loans with customer deposits instead of leaning on wholesale funding, and it could hold its own deposits rather than routing them through partners. Today WebBank holds the deposits behind Klarna's US high-yield savings product, PYMNTS notes.
The scale is already bank-sized. About 30 million Americans use Klarna each year, and the company says it has extended $91.3 billion in US credit since 2019. Klarna has operated as a licensed bank in Europe since 2017.
None of this is new as a trend. What's new is who is filing. Fintechs and platforms keep converging on the banking stack, from X Money offering 6% yields through Cross River Bank to Standard Chartered opening USDC minting to institutions. Regulators now decide whether one of the biggest names in consumer fintech gets to be a bank outright.
People Also Ask
Is Klarna becoming a bank in the United States?
Klarna applied on July 6, 2026 to Utah regulators and the FDIC to establish Klarna Bank USA. It becomes a US bank only if both applications are approved.
What is an industrial bank charter?
It is a state-chartered, FDIC-insured bank structure available in Utah that lets a commercial company own a bank, and it is a common route for fintechs seeking banking powers.
Who would run Klarna Bank USA?
Gary Harding, formerly chairman and CEO of Milestone Bank and president and CEO of Prime Alliance Bank, has been named CEO of the proposed bank.
Why does Klarna want a US banking license?
A charter would let Klarna fund loans with customer deposits, offer savings and credit products directly, and reduce its dependence on partner banks like WebBank.
Sources: CNBC, SEC (Klarna 6-K exhibit), PYMNTS