Source: Klarna

Today, Klarna, one of Europe’s leading payment providers and the global market leader in payment initiation services, announces the launch of its own Open Banking Platform.

This platform will enable access to more than 4,300 European banks through a single Access to Account (XS2A) API in line with Payment Services Directive (PSD2). Klarna’s XS2A API is the most established and proven solution that has been developed at scale across markets for almost 15 years through the Klarna Group company Sofort.



This platform provides a fully proven and mature infrastructure, superior market coverage and connectivity, with access to 99% of online banking consumers currently across 14 European markets. By opening up its own advanced technology and capabilities, Klarna is simplifying and democratising access to APIs securely. Both established and newer banks and fintechs as well as other licensed businesses, will be able to build smart and personalised offerings that meet the evolving needs of consumers across Europe. Klarna has been one of the leading proponents of the PSD2 legislation and believes high-quality APIs will drive innovation and competition but most importantly will empower consumers across Europe with increased choice, control and clarity on their finances, and ability to access better products.



Koen Köppen, Chief Technology Officer at Klarna, says: “At Klarna, we have an unparalleled depth of experience and capabilities in XS2A, and for over 15 years, we have succeeded in the midst of huge complexity. Now in the midst of further change and transformation from the PSD2 legislation and steps towards European Open Banking, we can enable other fintechs, banks and others to develop, test and bring new services and products to the market at a faster pace, through our Platform and by integrating with our single API. Our technology allows us to offer an ecosystem of services not only to consumers but also to businesses - whether that’s in retail, financial services or technology. We look forward to seeing all new solutions and products that will grow out of this, creating a consumer centric financial services industry in Europe.”



With Klarna’s platform, other fintechs, banks and businesses, will be able to develop offerings to enable consumers to have a complete overview of their financial lives and help people understand and engage with their finances in a more meaningful way. This could include payment initiation, different personal financial management tools which help consumers to budget, save and switch more easily between providers e.g. mortgage offerings or cheaper energy offers. It could also extend to new credit and insurance products or advisory services and wealth management. By taking advantage of Klarna’s Open Banking Platform these businesses will be able to offer their consumers the possibility to manage their finances on their own terms.



Klarna’s Open Banking Platform will offer a combination of both account information services (AIS) providing consolidated information on payment accounts, and payment initiation services (PIS) enabling account to account direct bank transfers as licensed under PSD2. Klarna’s XS2A PIS solution transferred over 10 billion Euros in volumes and completed over 100 million transactions for 2018 alone across markets. Klarna has had an unrelenting focus on providing a great user experience and high performance of the service, which is continually optimised. Across its markets, Klarna has a superior PIS conversion rate from the login to successful completion of the flow. The Klarna Open Banking Platform also provides developer friendly tools and technical solutions to help solve both the compliance and UX aspects of managing credentials and to overall help drive an accelerated time to market for products while minimizing costs and technological investments required.



George Parks Davie, Manager Open Banking Platform at Klarna, says: “We can offer the leading technology, quality, knowledge and market presence to help other players develop even better services and products for their consumers. Klarna’s XS2A API opens up a range of opportunities and through developer-friendly infrastructure it also empowers innovators. This is just another way of how Klarna aims to continually enhance the value we offer to consumers, helping them shop, save and manage their money as smoothly as possible.”