For most companies and businesses, the use of the words 'innovative' or 'innovation' have become just standard marketing practice. That critique cannot be levelled at the Scandinavian fintech, Klarna, which cuts card companies out of the online payments process entirely.  Now, building on previous success in processes and generating a mighty cashflow, the Swedish alternative payments provider, which boasts more than 60 million customers, primarily in the Scandinavian countries and the northern sector of central Europe, has been granted a banking license. It's Europe largest fintech to be granted a license. Following a similar trajectory to another payments provider turned business bank -  Australian fintech Tyro -Klarna's founder says his firm is "primed to become a preferred credit provider" to online customers. Klarna cuts card companies out of the system at the point of online payment. Instead the firm sends buyers an invoice, as soon as possible post-purchase, with a relatively short interest free period - effectively extending to them a line of credit.  The firm's founders initially reasoned that if one of the biggest barriers to online purchase, a clunky and complicated checkout process, could be eradicated, it would result in more sales.  Their reasoning turned out to be sound and the company is currently worth in excess of US$2 billion.  Now, Klarna has just become the largest European fintech company to be approved for a banking licence. Their chief executive and founder, Sebastian Siemiatkowski, openly said of the announcement that he wants Klarna to play a large part in disrupting and reshaping the retail banking industry.  Scandinavian payments blogger Daniel Döderlein is the founder of another Scandinavian fintech, Auka, the first company to launch a mobile wallet in Norway. Auka now provides its white-label mobile payments and identity verification services to banks globally, and works closely with Klarna.  Döderlein's business model therefore revolves around helping the same retail banks Klarna wants to disrupt. "Klarna has done what most banks haven't managed. That is: they created a simple solution to an everyday problem," Döderlein said.What Klarna sells are its simpler online payments and they now have in excess of 60 million customers. Businesses using the solution even accept a higher commission charge because they know customers won't abandon their shopping carts due to a cumbersome payment experience."Now that they have so many this business model is so well liked by merchants that they are prepared to pay a larger commission to Klarna than to the major credit card companies."With a shiny new bank licence and soon, direct access to accounts when PSD2 (the co-called open payments directive) takes effect, they're perfectly primed to become a preferred credit provider," said Döderlein."Combine those factors with Klarna's vast and growing network of both consumers and merchants and it's clear they are on track to become the next Visa. Except money is offered as a line of credit and the card networks, as well as the banks who still make a big revenue from online transactions, are out of the loop." Döderlein says there are two