Revolut to open branch in Klarna's home country in battle for 3 million customers in Scandinavia

Revolut, Europe's largest digital bank, is preparing to open a branch in Stockholm, where it will try to compete for customers with Klarna, the local market leader in payment services. This move will also mark the beginning of Revolut's confrontation with traditional banks, which control the majority of household deposits in the region.

Revolut's branch in the Swedish capital is set to open in 2026, Bloomberg reported, citing the company's director of development and marketing, Antoine Le Nel. Revolut currently has around 2 million customers in Northern Europe, half of whom are in Sweden. Revolut's goal for the region is to reach 3 million users by the end of 2026, Le Nel said.

Although the top manager claims that Revolut's "real competitors" in the Scandinavian market are traditional banks, the opening of a branch in Stockholm puts the London-based fintech giant in direct competition with Klarna, which has held a local banking license since 2017, Bloomberg notes. Klarna's payment services, including the option to purchase in installments, are used by about 80% of the Swedish population.

In Northern Europe, Revolut will focus on three key growth segments: affluent travelers who face high currency exchange fees at traditional banks, young people with their own income, and active city dwellers who use Revolut for everyday transfers and payments, Le Nel added.

Klarna held its IPO in New York in September. Its shares are now trading 8% below the offering price, with a market capitalization of $13.9 billion. Despite this, according to FactSet, most Wall Street analysts (13 out of 19) recommend buying its shares. The Swedish fintech startup has about 110 million customers worldwide, while Revolut has about 65 million users. The British neobank has not yet gone public, but its estimated value is $75 billion.

Revolut currently operates in 40 markets, plans to enter another 30 by 2030, and aims to gain 100 million customers in two years. In October 2025, the company obtained a crypto license in Cyprus, which will allow it to offer cryptocurrency-related services in the EU. In addition, Revolut has obtained a full banking license in Mexico. Entering the Mexican market is part of a global strategy to grow its customer base.

However, in the UK, where the company is registered, it does not yet have a full banking license, and its domestic business faces strict restrictions from regulators, Bloomberg notes. According to sources cited by the Financial Times, the British regulator is delaying approval of a full license due to checks on Revolut's ability to manage risks, given its rapid international expansion.

This article was AI-translated and verified by a human editor