AI-enabled payments network and shopping assistant Klarna has announced the launch of an Open Banking-powered settlement in the UK.
As per the information detailed in the press release, Klarna initiated the process of introducing Open Banking-enables settlements in the region, with the launch allowing consumers to pay Klarna directly from their bank accounts instead of leveraging a debit card. This aims to enable them to bypass card networks while providing Klarna with the ability to advance its commitment to developing an improved payment network.
Klarna’s development strategy
Furthermore, consumers who link their bank account to Klarna can receive insights into all their spending within the company’s app, as well as access to additional budgeting tools. Also, sharing bank data can support Klarna in lending money more knowledgeably, utilising the consumer’s real spending habits, to ensure that its decisions are a proper fit with the user’s budget.
According to Klarna’s officials, Open Banking provides a significant opportunity for the company to minimise the cost of payments to society by eliminating the established card payment networks and leveraging up-to-date bank accounts to make improved lending decisions. The current launch solidifies Klarna’s offering, with the company underlining that it has previously seen satisfactory results in the other ten countries across Europe in which the feature is available. Additionally, Klarna’s move supports the UK’s Open Banking adoption, providing it with a substantial expansion. Outside the UK, Pay Now by bank is already live in ten countries globally and is leveraged by over 20 million consumers each month, according to Klarna’s data.
More information about Klarna
As a Swedish fintech company, Klarna provides online financial services aiming to simplify how individuals shop online. Since the launch of its operations, the company extended its operations and provides flexible shopping and purchase experiences to more than 150 million active consumers across 500,000 merchants in 45 countries. Klarna offers direct payments, pay-after-delivery options, and instalment plans, allowing consumers to pay how they prefer to.
