Klarna, the AI-driven payments network, has introduced open banking-powered settlements in the UK, enabling consumers to pay directly from their bank accounts, bypassing traditional card networks. This move reflects Klarna's commitment to building the future of payments.
Initially available for Klarna's Pay Now option, open banking settlements will expand to Pay in 30 and Pay in 3 later in 2024. This initiative aims to enhance convenience for Klarna's 18 million UK customers and streamline transactions for 32,000 retailers.
Open banking settlements offer consumers simplicity, security, and speed. By selecting "Pay by bank," users can complete transactions within their mobile banking app, eliminating the need for entering payment details on multiple websites.
Linking their bank account to Klarna grants consumers access to insights and budgeting tools within the Klarna app. By leveraging bank data, Klarna can tailor lending decisions to individual spending habits, promoting responsible borrowing.
Wilko Klaassen, VP of Open Banking at Klarna, emphasized the potential of open banking to drive efficiency and improve lending practices. Klarna's expansion into the UK market is poised to accelerate the adoption of open banking and reshape the payments landscape.
Outside the UK, Klarna's Pay Now by bank feature is operational in 10 countries, serving over 20 million consumers monthly. As Klarna continues to innovate, the future of payments appears increasingly decentralized and consumer-centric.
