Klarna moves to secure U.S. banking charter

The proposed subsidiary would be led by Gary Harding, an industry veteran who previously served as CEO of Milestone Bank and Prime Alliance Bank. By securing its own charter, Klarna intends to move away from its reliance on third-party banking partners like WebBank. This shift would allow the company to fund loans directly through customer deposits rather than relying on more costly wholesale financing, while expanding its product suite to include checking accounts and credit cards.

CEO Sebastian Siemiatkowski described the move as the natural evolution of the firm’s mission to provide transparent financial tools. This application mirrors a broader trend among fintech and crypto firms seeking to bypass traditional banking intermediaries. While Klarna recently launched high-yield savings accounts in the U.S., those remain tethered to partner institutions. Gaining its own license would grant the company greater autonomy over its credit and payment infrastructure. The move comes as Klarna navigates a challenging market environment, with its share price currently trading at roughly half of its $40 IPO valuation from last September.