Klarna launches new open banking solution

Payment provider Klarna has released its own open banking platform which will provide 4,300 European banks access to its single access to account (XS2A) API.

The XS2A solution offers high market coverage and connectivity with access to 99 per cent of online banking consumers in 14 European markets, Klarna said. Its solution is available to established and challenger banks and will help them to build smart and personalised offerings for European consumers.

Banks will be able to leverage the solution to give their customers a complete overview of their financial lives and help them engage better with their finances. Some of the other opportunities includes personal financial management tools for budgeting, saving and switching providers for services like mortgages.

The open banking platform will supply both account information services, to give consolidated data around payment accounts, and payment initiation services, to enable direct bank transfers as stipulated in PSD2.

XS2A has transferred more than €10bn and supported over 100 million transactions in 2018.

Klarna chief technology officer Koen Köppen said, “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.”

Last year, Klarna received an investment from fashion and clothing brand H&M. The investment, which was reportedly around $20m, also saw Klarna support H&M’s loyalty program.


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