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A Swedish Fintech launches open banking platform

The payment provider Klarna has launched an open banking platform through which other fintechs, banks and companies can trigger payments on the accounts of consumers.

According to the company, the platform provides access to 99 percent of online banking customers in currently 14 European countries. More than 4,300 European banks could access the offering through a single programming interface.

Development of the Sofort GmbH

The interface was further developed by the Klarna subsidiary Sofort GmbH over 15 years. And is now intended to give fintechs, banks and other companies the opportunity to develop an offer for their target customers. According to Klarna, various personal financial management tools would be conceivable. For example, for optimizing one’s own expenses, for pensions and much more. By leveraging the benefits of the platform, companies would offer their clients the ability to manage their finances on their own terms.

Technically speaking, Klarna’s Open Banking Platform has a combination of Account Information Service (AIS) that provides consolidated payment account information and Payment Initiation Service (PIS). Which allows direct bank transfers in accordance with the PSD2 Legislation.

Faster introduction of new products

Ten billion euros in volume and across markets over 100 million transactions were completed over the interface in the past year alone. In addition, Klarna offers developer friendly tools and technical solutions that address issues such as compliance in the collection and processing of bank data. The bottom line is that the applications will help shorten time to market for products and minimize the cost and technology investment required.

Koen Köppen, Chief Technology Officer at Klarna believed with their open banking platform, they are creating a new ecosystem of consumer and business services. Be it retail or financial services. They look forward to new solutions and products that will emerge and change the market for the benefit of users.

Among the investors of Klarna are UA, Sequoia Capital, Bestseller Group, Atomico, VISA and Permira.

Also published on Medium.

Published inFintech

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