New Payment Option for UK Consumers: Klarna Launches Open Banking Settlements

Klarna, a leading global payments and shopping solutions provider, has recently introduced open banking-powered settlements in the UK. This innovative move allows consumers to pay directly from their bank accounts, bypassing the need for debit cards.

By leveraging open banking technology, Klarna aims to create a future-oriented payments network that not only streamlines and secures transactions but also provides valuable insights into consumer spending habits. With over 150 million active users worldwide and 2.5 million transactions processed daily, Klarna is well-positioned to drive the adoption of open banking settlements in the UK.

Initially launched for Klarna’s Pay Now instant payment option, the company plans to extend this feature to Pay in 30 and Pay in 3 later in 2024. This expansion is expected to significantly boost open banking usage in the UK, where approximately five million Britons already utilize open banking payments monthly.

The ‘Pay by bank’ feature allows consumers to easily complete transactions by redirecting them to their mobile banking app for a quick and secure payment process. By connecting their bank account to Klarna, consumers can access spending insights and budgeting tools within the app. Moreover, sharing bank data enables Klarna to make more informed lending decisions based on the consumer’s actual spending patterns, ensuring a personalized fit with their budget.

Wilko Klaassen, VP of open banking at Klarna, emphasized the potential of open banking to lower payment costs and improve lending decisions. He stated, “Open banking offers a huge opportunity for Klarna to reduce the cost of payments to society by cutting out the established card payment networks and using up-to-date bank account data. This new launch builds on our success in 10 countries across Europe and will give UK open banking a major boost.”


More from this stream


Neobank Mercury launches personal banking services tailored for startups and entrepreneurs.

Attention, founders: Mercury wants to move into your personal orbit. The neobank designed for startups announced on Wednesday that it will open up its services for personal banking use for the first...

‘OTTera Forms Strategic Partnership with Personalization Tech Company Spideo’

OTTera, a Los Angeles-based company that provides tools for companies to...

“Texas Corporation Acquires Engineering Firm in Southwest Florida”

A Texas engineering and consulting services company has acquired GradyMinor, a civil engineering firm with two Southwest Florida offices and 75 employees. San Antonio-based Pape-Dawson Engineers is......

Celebrate the Earth in April with Brochu Walker

April is officially Earth Month, and what better to mark the month than with the super-chic, conscious luxury brand, Brochu Walker? Here’s the low-down on this...

CEO Discusses Q1 Results: Strong Performance with 16% Increase in Net Income

Article 0 Comments The Travelers Companies, Inc. today reported first quarter net income of $1.123 billion, up 16% compared to $975 million in the prior year quarter. Core income in the current...

Choosing the Best CFO Executive Search Firm for Your Business

If the past year has taught us anything, it’s that leadership matters. This is especially true among companies in the Digital Health, Life Sciences, FinTech, and Software & Technology sectors with the myriad challenges and opportunities presented by the pandemic. Whether you are bolstering your C-suite to support continued success and growth or seeking executives […]

The post Selecting the Right CFO Executive Search Firm for Your Company appeared first on Insights Success.