Klarna wants to be a real American bank. The Swedish BNPL giant has applied for a US banking licence, betting a friendlier Washington will let it crack a market that has bruised European rivals.
Klarna has applied to US regulators to set up its own bank, tech.eu reports. The Swedish fintech filed with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to launch Klarna Bank USA, an FDIC-insured institution. If approved, a former Milestone Bank chief, Gary Harding, would run it, according to CNBC.
From BNPL to full bank
Klarna already holds a European banking licence, which its finance chief once called one of its biggest advantages. In the US, it has leaned on partner banks instead. It recently launched high-yield savings there, but WebBank, not Klarna, holds the deposits. A US charter would change that.
Owning a bank lets Klarna fund loans with customer deposits rather than pricier wholesale money. It could offer checking accounts and credit cards directly, and pull payments, lending and merchant services in-house. The prize is a cheaper, more self-reliant American business.
Klarna is not alone. Revolut applied for a US charter in March, and Dutch challenger Bunq refiled this year. The fintech Mercury won conditional approval in April. Owning a charter, once a chore fintechs avoided, now looks like an edge.
The timing matters. The US banking market has long resisted European entrants, and Klarna frames the Trump administration as more open to newcomers. “Banking is built on trust,” said co-founder and CEO Sebastian Siemiatkowski. He called an own licence “the natural next step.”
Why it matters
Klarna has gone big in America. It claims more than 30 million US customers, a US debit card, and over $93bn in credit extended. Yet the ground is not entirely friendly. Monzo quit the US to focus on Europe, and Klarna’s own shares trade near half their September IPO price.
A banking licence would deepen its American bet at a moment when investors want discipline. For now, Klarna has filed the papers. Regulators, and trust, will decide the rest.
I reluctantly upgraded from my Pixel 4a in late 2024, which means I spent four years clinging to a phone that still felt like a phone. Part of that was the size. The Pixel 4a was small enough to use without performing thumb yoga, a disappearing luxury now that flagships have settled into pocket-tablet territory. That’s an argument for another day.
The uglier issue is what happened after I moved on. In January 2025, Google pushed an automatic Android 13 update to Pixel 4a phones. Google’s own support page says the update reduced available battery capacity and affected charging performance on some impacted devices. Reddit users were less polite. One r/Pixel4a post said the battery suddenly had “around 40% of its former capacity” after the patch.
For poor ol’ 4a, that was basically the death knell.
When an update becomes the problem
A dying battery is normal. A four-year-old phone needing service isn’t exactly a scandal. Batteries age, screens fail, ports loosen, and gravity remains undefeated.
Google Pixel 4aAndy Boxall / Digital Trends
This felt different. The phone didn’t simply get old in someone’s pocket. Its usable life changed after a company-controlled patch, and the owner was left to deal with the result. The Verge reported that the update was tied to overheating-risk mitigation and reduced charging capacity by more than 50% on affected units. Battery safety is real. It still doesn’t erase the experience of waking up to a phone that suddenly can’t survive the day.
That’s what update death looks like. Software doesn’t just support aging hardware anymore. It can also decide when that hardware becomes miserable to keep using.
When every patch feels haunted
My wife, who’s rocking an S24 Ultra, has a different version of the same dread. She keeps running into Reddit threads about Samsung Galaxy phones and the dreaded green line, that bright vertical scar that makes a screen look like it has been reassigned to a cyberpunk prop department. One r/S23 user wrote that a green line appeared on a carefully maintained phone after about a year and a half, then said Samsung service quoted a screen replacement because the warranty was over. Another Samsung Community post claimed a green-line issue appeared after an August update, with the display allegedly working perfectly before it.
Reddit isn’t a forensic lab with avatars. A green line can come from boring hardware failure, not corporate villainy with a release calendar. Still, the anxiety is real. People don’t only worry that an update will move a button or ruin a camera setting. They worry it might be the thing that nudges a working device from “old” to “not worth repairing.”
Modern gadgets are never fully handed over. They keep phoning home. They keep asking for patches. They keep depending on decisions made long after the receipt has faded. Ownership now comes with a quiet asterisk.
The graveyard got software updates
Planned obsolescence used to sound like tinfoil-hat consumer paranoia, which was convenient for everyone selling the new thing. Then regulators started writing it down in boring official language. In 2018, Italy’s competition authority fined Samsung and Apple after finding that software and firmware updates caused serious malfunctions, reduced performance, and sped up replacement of older phones. Samsung was fined €5 million, while Apple was fined €10 million.
Apple’s battery-throttling mess made the suspicion harder to laugh off. In the US, Apple agreed to a settlement of up to $500 million over claims that it slowed older iPhones, while a separate multistate settlement required Apple to pay $113 million over alleged misrepresentations around iPhone batteries and performance throttling. Consumers weren’t hallucinating the pattern. The receipts were scattered across court filings, regulatory decisions, and phones that suddenly felt older than they had the day before.
Europe seems less willing to accept “trust us” as a product-lifetime policy. New EU rules for smartphones and tablets started applying on June 20, 2025, covering durability, repairability, battery life, and software updates. New labels put some of that lifespan math in front of shoppers before checkout.
The post-warranty graveyard used to be easy to recognize: cracked screens, swollen batteries, and charging ports full of pocket lint. Now the graveyard has paperwork, compatibility warnings, and software that slowly stops cooperating. The gadget can still turn on. It can still look fine on a desk. Then one day the company changes what “usable” means, and the thing you paid for starts practicing being trash.
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