Klarna Operates as Fully Licensed European Bank Since 2017, Expanding Beyond BNPL

Klarna, the Swedish fintech giant, has been operating as a fully licensed bank across Europe since June 2017, a fact that CEO Sebastian Siemiatkowski highlighted in a recent social media post. Siemiatkowski stated, "Also since a lot of people don’t know. We are a fully licensed bank in Europe!" This emphasizes Klarna's established status beyond its well-known "buy now, pay later" (BNPL) services.

The company received its full banking license from Finansinspektionen, the Swedish Financial Supervisory Authority, transforming its operations and allowing it to offer a broader suite of financial products. This strategic move enabled Klarna to legally change its name to Klarna Bank, though it continues to market itself simply as "Klarna." The license allows the company to operate across the European Union, extending its reach beyond its initial payment processing solutions.

Upon receiving the license, Siemiatkowski described it as an "exciting milestone," positioning Klarna to challenge traditional retail banking. He noted that the company, with its technological platform and focus on customer experience, aimed to "drive change in retail banking" by providing solutions that streamline financial lives and support businesses. This marked a significant shift from its origins as an e-commerce payment facilitator.

Since obtaining its banking license, Klarna has expanded its offerings to include consumer bank accounts, debit cards, and savings accounts in several European countries, including Germany. These services aim to compete directly with established banks and challenger banks by providing modern digital banking solutions. The company has also secured an Electronic Money Institution (EMI) license in the UK, further solidifying its presence in diverse financial markets.

Klarna's evolution into a full-fledged bank underscores a broader trend in the fintech industry, where payment providers are increasingly seeking banking licenses to diversify their services and deepen their engagement with customers. This allows Klarna to offer more comprehensive financial management tools, moving beyond transactional payments to become a more integrated part of consumers' everyday financial lives.