Klarna Eyes U.K. Finance Rules as Factor in Blockbuster IPO (1)

Europe’s most valuable startup, Klarna Bank AB, said its decision on whether to move ahead with a blockbuster listing in London hinges on the U.K. government’s post-Brexit financial services regulation.

The Swedish payments company’s Chief Executive Officer Sebastian Siemiatkowski hopes the British government “follows the lead of Singapore” in easing the burden of red tape on the industry. He wants rules that allow customers to “shift banks in the click of a button.”

Allowing innovation in finance would help Klarna and other financial technology companies grab business from traditional credit cards. Klarna enables consumers to “buy now and pay ...