Klarna Granted Full Banking License

European online payment provider Klarna yesterday revealed it has been granted a full banking license by Finansinpektionen—the Swedish Financial Supervisory Authority. The company, which officially changed its name to Klarna Bank, had in recent months been focusing on providing credit to online customers rather than simply processing e-commerce payments. Monday’s announcement indicates the company will begin to offer even more financial products for both consumers and businesses. In its statement, Klarna mentioned that, having been granted the license, the company’s 60 million users and 70,000 merchant clients make it one of Europe’s largest banks.

“As the entire banking value chain is being challenged, the payments sector has seen the most profound transformation,” said Sebastian Siemiatkowski, the Stockholm-based company’s CEO. “Klarna has played a role in disrupting payments services for the better and now as a consumer-oriented, product driven and technology intensive bank, we have the tools to drive change in retail banking. We will do this by providing solutions that ensure a smooth customer experience, help people streamline their financial lives and continue to support businesses by solving the complexity in handling payments. The opportunities are tremendous, it is a thrilling prospect.”