Klarna Secures New License from UK’s Financial Conduct Authority

Klarna Group Plc said it has received an electronic money institution license for its UK division, which could lay the ground work for the Swedish fintech to more directly compete against the likes of Revolut Ltd. and Monzo Bank Ltd. for retail bank customers.

The approval means Klarna — which is best known for its buy now, pay later services — will be able to offer its 11 million UK customers accounts where they can save funds, according to a statement. It will also allow Klarna to launch a debit card in the UK.

“This authorization marks Klarna’s next big ...