Is Klarna safe? Swedish banking licence, deposit guarantee and the 2024 fine

In short: money in a Klarna bank account (Klarna balance) is held by Klarna Bank AB (publ), a bank authorised by Sweden's Financial Supervisory Authority, and is covered by the Swedish deposit guarantee up to SEK 1,150,000 per customer. Paid memberships and pay-later purchases are not deposits, and in December 2024 the regulator fined Klarna SEK 500 million for anti-money laundering failings.

Klarna is still best known for paying later at online shops. This guide looks only at the account side: where your money sits, how it is protected and what you should check before you top up.

Who holds your money at Klarna

Klarna's account is provided by Klarna Bank AB (publ), based at Sveavägen 46 in Stockholm. In the footer of its account page, Klarna says the company "is authorised by the Swedish Financial Supervisory Authority in Sweden and is regulated by the Central Bank of Ireland for consumer protection rules".

The Swedish regulator, Finansinspektionen (FI), confirms in its 2024 decision that Klarna Bank AB holds a licence to conduct banking business under the Swedish Banking and Financing Business Act. That is a full banking licence, not an e-money licence, so the money you add counts as a deposit rather than safeguarded e-money.

You can see Klarna's listing, fees and memberships on our Klarna page.

How the Swedish deposit guarantee works

The Swedish National Debt Office (Riksgälden) runs the deposit guarantee. Its press release of 30 October 2025 says the maximum rose from SEK 1,050,000 to SEK 1,150,000 per person and institution on 1 January 2026. EU countries outside the euro recalculate this amount every five years using the euro exchange rate, which is why the limit is set in krona rather than euros.

Some practical points:

• The limit is per person, per bank. Klarna's information sheet for deposits taken through the savings platform Raisin says the cover applies per account holder, per bank, and also includes deposits held outside that platform. If you have a Klarna account and a Klarna fixed-term deposit, they share one limit.
• The euro value moves. Because the limit is in krona, its value in euros changes slightly with the exchange rate. Klarna describes it as "about EUR 100,000".
• Higher cover in some cases. Riksgälden says that in certain cases, such as the sale of a private residence, compensation can be paid up to SEK 5 million.
• Funded by the banks. The guarantee is funded by annual fees charged to banks and other credit institutions.

For how deposit guarantees compare across Europe, see our guide Is my money safe in a neo bank?.

What is not covered

The deposit guarantee protects money held in your Klarna account. Several other things in the Klarna app work differently:

The membership point matters if you pay for a plan: the fee buys perks, but the perks themselves are not protected like a deposit. Our comparison does not cover pay-later credit at all.

The 2024 fine from Finansinspektionen

On 11 December 2024, FI gave Klarna Bank AB a remark and a fine of SEK 500 million. The decision says Klarna broke several central rules of the Swedish anti-money laundering act. FI found significant shortcomings in Klarna's general risk assessment and problems with its customer due diligence routines. The investigation covered April 2021 to March 2022.

FI also wrote that the breaches were not so serious that there was reason to consider withdrawing the bank's licence or issuing a warning. The fine does not affect the deposit guarantee, which protects customers whatever happens to the bank's finances. It does show that the regulator found gaps in Klarna's controls during that period.

Before you add money: a short checklist

1. Check you can open the account. Klarna's page lists these conditions: aged 18 or over, an address in the EU, a valid tax ID and an EU or UK phone number.
2. Keep large sums in view. If your savings at Klarna Bank AB (including any deposits through Raisin) come close to SEK 1,150,000, consider spreading them across banks.
3. Know how long withdrawals take. Klarna says transfers to another bank account can take up to 3 business days.
4. Separate account and credit. Topping up your account and paying later are different products, with different rules.
5. Protect your login. Klarna mentions secure logins and fraud protection; never share codes with anyone who calls or messages you.

If an account is ever blocked, our guide on what to do if a neo bank freezes or closes your account explains your options. To compare Klarna with other accounts, use our neo bank comparison.

Sources

• Klarna: Klarna bank account (Klarna balance)
• Klarna: Product information sheet for term deposits via Raisin (September 2024)
• Riksgälden: Maximum deposit guarantee amount changed to SEK 1,150,000
• Finansinspektionen: Decision on remark and fine for Klarna Bank AB (in Swedish)

Prices and features checked on 2026-11-06.

This guide is general information, not financial advice. Fees, features and availability change, so check the provider's own website before you apply. Read how we compare providers and our affiliate disclosure.