Klarna is the latest fintech to embrace the open banking revolution. The payments company has announced the launch of its own Open Banking Platform, which will enable access to more than 4,300 banks in 14 different markets across Europe via a single Access to Account (XS2A) API – all in accordance with PSD2 guidelines.
Klarna’s offering will feature both account information services (AIS) for consolidated data on payment accounts, and payment initiation services (PIS) to support PSD2-licensed, account-to-account direct bank transfers. In a statement, the company noted that its XS2A PIS technology transferred more than €10 billion in volume and completed more than 100 million transactions last year alone.
“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,” Klarna CTO Koen Koppen explained. “We look forward to seeing all (the) new solutions and products that will grow out of this, creating a consumer centric financial services industry in Europe.”
Klarna’s Open Banking Platform also gives developers the tools they need to handle the compliance and user experience of credentials management. At the same time, the platform helps them get new products – from payment initiation and credit solutions to roboadvisory and PFM – to market faster and with less cost.
“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 Open Banking Platform Manager George Parks Davie said. “Klarna’s XS2A API opens up a range of opportunities and through developer-friendly infrastructure it also empowers innovators.”
Klarna demonstrated its flagship platform at FinovateSpring 2012. Headquartered in Stockholm, Sweden, the company announced a partnership with Canadian e-commerce and in-store point-of-sale financing specialist PayBright earlier this month. In February, Klarna extended its Pay Later service to Gymshark customers in the U.K. and the Nordics. At the beginning of the year, the company announced collaborations with both rapper Snoop Dogg and watchmaker Daniel Wellington.
Founded in 2005, Klarna has raised more than $681 million in funding. The company includes Sequoia Capital, General Atlantic, Creandum, Visa, and Permira among its investors.