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\t\tKlarna has secured a fresh licence in the UK.\t<\/p>\n\t\t\tWednesday 30 July 2025 10:07 am\n\t\t\t<\/p>\n
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\t\tKlarna has secured a fresh licence in the UK.\t<\/p>\n
Swedish fintech Klarna has received an electronic money institution licence<\/a> from the Financial Conduct Authority, setting the firm up to compete with UK firms Monzo and Revolut.<\/p>\n The licence will allow Klarna to offer its 11 million UK customers savings accounts and also pave the way for a debit card launch.<\/p>\n Abby Vickers, Klarna\u2019s head of financial services UK, hailed the approval<\/a> as the \u201cnext big step in the UK\u201d as it seeks to extend operations.<\/p>\n Vickers said \u201ctraditional banks are still playing catch up,\u201d as she touted the fresh permissions as ramping up Klarna\u2019s offerings for finance management. <\/p>\n The licence approval comes as the fintech looks to diversify away from its flagship buy now, pay later loans. <\/p>\n The UK government launched a crackdown on buy now, pay later providers earlier this year requiring new affordability checks as a part of efforts to make banking standards more consistent.<\/a><\/p>\n Klarna IPO on ice<\/p>\n Klarna set out plans to IPO on the New York Stock Exchange earlier this year, but was quickly derailed after President Donald Trump\u2019s tariff<\/a> onslaught.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tRachel Reeves at odds with Bank of England over Revolut licence bid<\/a><\/p>\n The company has significant ties to US and China trade due to its prevalence on Chinese ecommerce websites Temu and Shein, which were at risk of the White House\u2019s protectionist policies. <\/p>\n Klarna is anticipated to take a second shot at a public listing in the near future, following US fintech Chime\u2019s successful IPO.<\/p>\n But recent months have marked a headache for the firm after it recorded a net loss of $99m for the first quarter of 2025<\/a> after a surge in failed loan repayments.\u00a0<\/p>\n Consumer credit losses topped $136m \u2013 marking a 17 per cent rise. The proportion of loans not paid back \u2013 its credit loss rate \u2013 edged up to 0.54 per cent from 0.51 per cent.<\/p>\n The firm has also faced a more competitive buy now, pay later market in the last year with the growth of firms such as Zilch and Clearpay.<\/p>\n Klarna has diversified its product range on the back of rising competition with a new \u201cKlarna Plus\u201d subscription services and most recently the launch of physical cards \u2013\u00a0something rival Zilch has also introduced.<\/a><\/p>\n \t\t\t\t\tRead more<\/p>\n