Kraken Parent Payward to Acquire Saldo Bank for European Expansion

The acquisition grants Payward access to an established European banking infrastructure, including a specialized banking license issued by the European Central Bank. Saldo Bank currently operates in Lithuania, Finland, Sweden, and Germany, with existing authorization to extend its services into the Netherlands. By folding this institution into its operations, Payward aims to offer a suite of products, such as interest-bearing deposits, business loans, and payment cards, to its European customer base.

Beyond consumer-facing products, Saldo brings developed banking-as-a-service capabilities to the table. These systems allow for automated loan assessments and embedded financing, which Payward intends to leverage alongside access to the Single Euro Payments Area (SEPA). Jarkko Mäensivu, president of Saldo Bank, noted that the merger connects the lender’s operational track record with Payward’s regulated infrastructure, potentially streamlining how customers access credit and payment services.

This move aligns with Payward’s broader strategy to build a regulated financial platform, distinct from its ongoing U.S. banking efforts. While Payward previously secured a limited-purpose master account from the Federal Reserve and an electronic money institution license in Ireland, the Saldo deal represents a direct entry into the European retail banking market. Co-CEO Arjun Sethi emphasized that the acquisition is a natural progression of the company’s long-term goal to provide a unified platform for asset holding and money movement. The transaction remains subject to customary closing conditions and regulatory approvals, with no purchase price disclosed by the parties.