Payward, the parent company of crypto exchange Kraken, has agreed to buy Saldo Finance Oy.

The Finnish holding company owns Saldo Bank, a digital bank licensed in Lithuania. As a result, the deal would bring Payward an EU banking licence.

Saldo Bank serves customers in Lithuania, Finland, Sweden and Germany. In addition, it holds a passport to operate in the Netherlands.

The bank offers retail term deposits across its markets. However, its lending is more limited, with consumer loans in Lithuania, Finland and Sweden, and secured and unsecured SME loans in Lithuania and Finland.

Its credit card is available in Finland, and the bank plans to launch it in Sweden in 2027.

Saldo Bank also has full access to SEPA payments and provides embedded lending to other fintech firms in Finland and Germany.

For Payward, the purchase is the next step in growing Payward Banking. According to the company, this unit has issued more than US$2 billion in loans.

It holds a Federal Reserve limited-purpose master account and an electronic money licence from the Central Bank of Ireland.

Once regulators approve and the deal closes, Payward expects to offer European clients interest on deposits, lending and card issuance services for other businesses.

“A regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should: one place to hold assets, move them freely, and put them to work,”

said Arjun Sethi, Co-CEO of Payward.

 “Combining these capabilities with our five-market footprint means far more customers can access the full range of what both businesses offer – banking, payments, and lending in one place,”

said Jarkko Mäensivu, President of Saldo Bank.

Neither company disclosed the terms. Subject to customary closing conditions, including regulatory approvals, the transaction is expected to complete in 2027.

Featured image: Edited by Fintech News Switzerland, based on image by Saldo Bank via its website and mego-studio via Magnific.