Two Europe-based fintechs have expanded their respective banking operations throughout Europe, demonstrating the potential value of market expansion to their growth goals.
Klarna has extended its open banking product to a total of 24 European countries. Third-party financial services providers in eight new markets including Portugal, Ireland, and Lithuania can now access consumers’ bank account information via the fintech’s API, per AltFi. Launched in 2019, the API processes over 150 million transactions every year. Klarna’s first move beyond its buy now, pay later roots was to secure a banking license in 2017, though its banking ambitions have picked up steam in the past year. Its latest move to expand its open banking product aligns with Klarna’spush to become a financial “super app,” most recently with the introduction of bank accounts in Germany.
Revolut can now accept deposits and lend in 10 additional European countries. The UK-based neobank obtained a specialized license from the Bank of Lithuania and is leveraging passporting rules to operate in other countries like Greece and Romania, TechCrunch reports. For existing users in those markets, Revolut can offer lending products like credit cards and personal loans. While it boasts an impressive 15 million retail banking customers and a $5.5 billion valuation, Revolut still needs to prove that it can make those customers profitable—and being able to offer revenue-generating products in more markets could provide a much-needed boost toward breaking even.