Swedish fintech Klarna has launched its own Open Banking Platform, which it says will promote competition and innovation across the European payments industry.
The platform connects to more than 4,300 banks via an access to account (XS2A) API (application programming interface), providing access to 99% of online banking customers across 14 European markets.
Klarna is a bank specialising in e-commerce and the handling of online payments, and processes more than one million transactions per day.
Klarna Chief Technology Officer Koen Köppen said: “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, amid further change and transformation from 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.”
How will the Klarna payments platform benefit customers?
Klarna envisages a range of different uses for its new product, which will help consumers gain a better understanding of their financial lives and be able to engage with money in a more meaningful way.
Personal financial management tools, credit and insurance products, and wealth management advisory services are among the potential uses for the open banking platform.
PSD2 (Payment Services Directive) legislation has enabled data sharing between European finance institutions, allowing fintechs like Klarna to develop new services that allow customers to have better insights and control over their money.
Working within these new rules, Klarna’s platform offers a combination of account information services (AIS) providing consolidated information on payment accounts, and payment initiation services (PIS) enabling account-to-account direct bank transfers.
It also includes a range of developer tools to help fintech and banking customers build user-friendly products that can be quickly prepared for market.
Manager of Klarna’s open banking platform, George Parks Davie, said: “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’s XS2A API opens up a range of opportunities and through developer-friendly infrastructure it also empowers innovators.
“This is just another way of how Klarna aims to continually enhance the value we offer to consumers, helping them shop, save and manage their money as smoothly as possible.”
