Swedish fintech Klarna has been granted an electronic money institution licence by the Financial Conduct Authority, positioning the company to compete with 海角视频 firms Monzo and Revolut.
The licence will enable Klarna to offer savings accounts to its 11 million 海角视频 customers and also lay the groundwork for a debit card launch, as reported by .
Abby Vickers, Klarna's head of financial services 海角视频, celebrated the approval as the "next big step in the 海角视频" as it aims to expand operations.
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Vickers stated that "traditional banks are still playing catch up," promoting the new permissions as enhancing Klarna's offerings for finance management.
The licence approval arrives as the fintech seeks to diversify from its flagship buy now, pay later loans.
Earlier this year, the 海角视频 government initiated a crackdown on buy now, pay later providers, necessitating new affordability checks as part of efforts to standardise banking practices.
Klarna IPO on ice
Earlier this year, Klarna revealed plans to IPO on the New York Stock Exchange, but was swiftly derailed following President Donald Trump's tariff onslaught.
The firm has significant ties to US and China trade due to its prominence on Chinese ecommerce websites Temu and Shein, which were threatened by the White House's protectionist policies.
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Klarna is expected to attempt a public listing again in the near future, following the successful IPO of US fintech Chime.
However, recent months have proved challenging for the company following a net loss of $99m in the first quarter of 2025, driven by a spike in defaulted loan repayments.
Consumer credit losses exceeded $136m – representing a 17 per cent increase. The share of unpaid loans – its credit loss rate – climbed to 0.54 per cent from 0.51 per cent.
The company has also encountered intensified competition in the buy now, pay later sector over the past year, with the emergence of rivals including Zilch and Clearpay.
Klarna has broadened its service portfolio in response to heightened competition, introducing a new "Klarna Plus" subscription offering and recently launching physical cards – a move that competitor Zilch has similarly adopted.