Klarna

Is Klarna safe?

For savers, mostly yes, within the deposit guaranteeDeposit insuranceA government-backed scheme that repays bank customers up to a set limit if their bank fails, such as the FDIC in the US or the FSCS in the UK.More in the glossary limit. Klarna Bank AB is a licensed Swedish bank, and its savings accounts are covered by Sweden's deposit guarantee up to SEK 1,150,000 per person, roughly €100,000. At the end of 2025 its CET1CET1 ratioA bank's highest-quality capital (mainly shares and retained profits) as a share of its risk-weighted assets. Higher means more room to absorb losses.More in the glossary capital ratio was 15.7% against an 8.6% requirement, and its liquidity coverage ratioLiquidity coverage ratioA bank's cash and easy-to-sell assets compared with the money that could flow out in a 30-day crisis. It must be at least 100%.More in the glossary was an unusually high 892%. We score it 71/100. The deductions come from what Klarna does with the money: it lends short-term unsecured credit to millions of shoppers, it lost $273 million in 2025, and Finansinspektionen fined it SEK 500 million in December 2024 for money laundering control failures.

Who protects your Klarna savings

Klarna offers savings accounts directly to residents of 14 countries, among them Germany, Sweden, the Netherlands, France, Spain and Italy. All of these deposits sit at Klarna Bank AB in Stockholm, so the Swedish scheme run by Riksgälden pays out if the bank fails, not the German or Dutch one. The limit rose from SEK 1,050,000 to SEK 1,150,000 on 1 January 2026, and up to SEK 5 million can be covered temporarily in some cases, such as after selling a home.

Germany is by far the biggest market: $10.2 billion of Klarna's $13.0 billion of deposits at the end of 2025 came from German savers. About $5.3 billion arrived through third-party savings platforms rather than Klarna's own app. Klarna says about 95% of deposits were within the guarantee limit.

Two things are not deposits at Klarna Bank. In the US, Klarna takes no time deposits and runs Klarna balance and Fair Financing with WebBank. And a pay later purchase is money you owe Klarna, not money it holds for you.

Capital and liquidity

The ratios look stronger than most big banks'. There are reasons to read them with care. Klarna's assets are mainly unsecured consumer receivables, which carry more risk than mortgages. Its allowance for credit losses was $492 million at the end of 2025 on about $11 billion of receivables, and it uses risk transfer deals with outside investors to lower its capital requirements. The group made a net loss of $273 million in 2025, though it returned to a small profit of $9 million in the second quarter of 2026.

Liquidity is not a worry on current numbers. The coverage ratio is many times the 100% minimum because Klarna holds billions in central bank deposits and treasury bills against its savings balances. Online savings follow interest rates, though, and deposits fell by about $1.3 billion in the first half of 2026, a reminder that rate-driven savings can leave quickly.

The money laundering fine

On 11 December 2024 Finansinspektionen issued Klarna Bank a remark and a SEK 500 million fine. Looking at April 2021 to March 2022, it found that Klarna's general risk assessment had significant deficiencies, including no assessment of how its products could be used for money laundering, and that its due diligence rules did not cover all invoice customers. Klarna says the investigation found no transactions that broke the rules, and it has since added controls. The regulator said the breaches did not justify a warning or a licence withdrawal.

Earlier, in March 2022, Sweden's data protection authority IMY fined Klarna SEK 7.5 million because its privacy information did not clearly say why and on what legal basis it processed personal data. The administrative court of appeal upheld the full amount. Data handling remains a weak spot: on 27 May 2021 a faulty app update showed some customers other users' details for about 30 minutes, which Finansinspektionen looked into as a possible breach of bank secrecy, and in 2025 the data protection authority issued Klarna 33 reprimands over how it handled data requests and secured personal data.

Who should be careful

1. Keep Klarna savings below SEK 1,150,000, or about €100,000, if you want them all covered.
2. Check that you are dealing with Klarna Bank and not a third-party savings platform that places your money elsewhere. The protection follows the bank that holds the deposit.
3. Use pay later only for purchases you could pay for today. Late payments can lead to fees, collection and, in several countries, records with credit agencies.
4. Do not give your password or a one-time code to anyone who calls or texts in Klarna's name. Log in through the app only.

How we scored it

Liquidity (82) and deposit protectionDeposit insuranceA government-backed scheme that repays bank customers up to a set limit if their bank fails, such as the FDIC in the US or the FSCS in the UK.More in the glossary (76) are Klarna's strongest factors, backed by a 15.7% CET1 ratioCET1 ratioA bank's highest-quality capital (mainly shares and retained profits) as a share of its risk-weighted assets. Higher means more room to absorb losses.More in the glossary that earns capital a 72. Conduct (55) is the weakest because of the 2024 money laundering fine, and digital security (65) and stability history (70) reflect a short, loss-making record as a bank. Compare bunq and N26, two other app-based European banks.