Klarna NYSE:KLAR is making a deeper push into U.S. financial services by applying to form Klarna Bank USA, a proposed Utah-chartered industrial bank backed by FDIC insurance.
Klarna is a Swedish fintech company best known for buy now, pay later checkout financing that lets shoppers split purchases into installments.
It also offers payments, shopping tools, credit products, merchant services, and is now trying to expand deeper into U.S. banking.
The company said Monday it filed applications with the Utah Department of Financial Institutions and the FDIC. If approved, the bank would operate as a wholly owned Klarna subsidiary and bring more of the company's U.S. banking operations in-house.
The move would give Klarna more control over payments, savings, credit, and merchant services at a time when fintech firms are looking for stronger regulatory footing and tighter customer relationships. Klarna said the goal is to offer U.S. users a more transparent digital banking experience, built around traditional banking products, digital tools, and no hidden fees.
The company also named Gary Harding as president and CEO of Klarna Bank USA.
For Klarna, the charter could mark an important step beyond buy now, pay later. If regulators approve the application, the company would move closer to becoming a broader U.S. banking platform rather than just a payments and credit brand.