Klarna gets banking licence

Klarna gets banking licence

Payments provider Klarna has powered up with a full banking licence from Finansinspektionen, the Swedish Financial Supervisory Authority.

Sebastian Siemiatkowski, CEO of Klarna, says it is “now one of Europe’s largest banks with 60 million customers, 70,000 merchants and working seamlessly across borders”.

With the licence, Klarna states it can broaden its product portfolio for customers and merchants. It is also one of many fintech firms moving into the banking world.

Across the globe, new banks are springing up and challenging the old order. In fact, the UK is overflowing with fresh faces – from Abacus to Zopa.

As part of its expansion plans, Klarna has also been acquisitive – with the purchase of fellow payments company BillPay, and the crumbling German start-up Cookies.

Klarna was founded in 2005 in Stockholm. It is valued at more than $2 billion, and operates in 18 markets, and has more than 1,500 employees.