Payward to acquire Saldo Finance and expand banking capabilities in Europe

Payward, the US-based financial infrastructure company behind Kraken, has signed a definitive agreement to acquire Saldo Finance Oy. The Finland-based holding company owns Saldo Bank UAB, a specialised digital bank licensed by the European Central Bank and supervised by the Bank of Lithuania.

Saldo Bank has passporting rights across five European markets. The transaction is expected to close in 2027, subject to regulatory approvals and customary closing conditions.

Acquisition supports the development of Payward Banking

The transaction forms part of Payward's expansion of Payward Banking, one of the four pillars of its platform alongside trading, asset management and services. Payward Banking has already originated more than USD 2 billion in loans.

The business also holds a Federal Reserve limited-purpose master account in the US and an electronic money institution licence from the Central Bank of Ireland. Combined with Saldo Bank's banking licence, this infrastructure is expected to expand Payward's regulated banking capabilities in Europe.

Payward plans deposits, lending and Banking-as-a-Service in Europe

Subject to regulatory approvals, Payward Banking expects to use the Saldo Bank licence to offer European clients interest-bearing deposits, lending products and Banking-as-a-Service capabilities. These may include passporting, card issuing and SME lending.

Arjun Sethi, Co-CEO of Payward, said the company has developed Payward Banking licence by licence and market by market. He said an EU-regulated bank would allow Payward to serve European clients as a primary financial institution where customers can hold, move and use their assets.

Sethi also indicated that the EU will be the starting point for a banking business with broader global ambitions.

Saldo Bank operates across five European markets

Saldo Bank serves customers in Lithuania, Finland, Sweden and Germany and holds a passport to operate in the Netherlands. Retail term deposits are available across all of these markets.

The bank offers consumer loans in Lithuania, Finland and Sweden, while secured and unsecured SME loans are available in Lithuania and Finland. Its credit card is live in Finland and is expected to launch in Sweden in 2027.

Saldo Bank also has full access to SEPA payments and provides embedded lending services to fintech companies in Finland and Germany. The bank employs more than 90 people.

Combined infrastructure targets broader banking, payments and lending services

Jarkko Mäensivu, President of Saldo Bank, said Payward has spent years building regulated infrastructure across the US and Europe. He added that Saldo Bank's infrastructure was designed to operate across Europe and includes embedded services for other fintech companies.

According to Mäensivu, combining these capabilities with Saldo Bank's five-market footprint is expected to provide more customers with access to banking, payments and lending through one platform.