Payward, the US-based financial infrastructure platform behind Kraken, has signed a definitive agreement to acquire Saldo Finance Oy, a Finland-based holding company. Its subsidiary, Saldo Bank UAB, is a specialised digital bank licensed by the European Central Bank and regulated by the Bank of Lithuania, with passporting across five European markets. The transaction is expected to close in 2027, subject to customary closing conditions and regulatory approvals.
EU banking licence for Payward Banking
The acquisition forms part of the development of Payward Banking, one of the four pillars of Payward’s platform alongside trading, asset management, and services. Payward Banking has originated more than USD 2 billion in loans and holds a Federal Reserve limited-purpose master account in the US, as well as an electronic money institution licence from the Central Bank of Ireland. Combined with this infrastructure, the Saldo Bank licence is expected to allow Payward Banking to offer European clients interest on deposits, lending products, and Banking-as-a-Service capabilities, including passporting, card issuing, and SME lending, subject to regulatory approvals.
Arjun Sethi, Co-CEO of Payward, said Payward Banking has been built licence by licence and market by market, and that a regulated EU bank allows the company to serve European clients as a primary financial institution, where customers can hold assets, move them, and put them to use. Sethi added that the company is starting in the EU, with global ambitions for the banking business.
Saldo Bank’s five-market footprint
Saldo Bank serves customers in Lithuania, Finland, Sweden, and Germany, and holds a passport to operate in the Netherlands. Retail term deposits are offered in all of its markets, while consumer loans are available in Lithuania, Finland, and Sweden, and secured and unsecured SME loans in Lithuania and Finland. The bank’s credit card is live in Finland and is expected to launch in Sweden in 2027. Saldo Bank also has full SEPA payments access and provides embedded lending to fintech companies in Finland and Germany, with more than 90 employees.
Jarkko Mäensivu, President of Saldo Bank, said Payward has spent years assembling regulated infrastructure across the US and Europe, while Saldo Bank’s infrastructure was built to operate across Europe, including embedded services for other fintechs. Mäensivu added that combining these capabilities with the bank’s five-market footprint will give more customers access to banking, payments, and lending in one place.
