Stockholm based payment providers and payment initiation services Klarna have announced the launch of its own open banking platform.
This platform will enable access to more than 4,300 European banks through a single Access to Account (XS2A) API that is in line with Payment Services Directive (PSD2).
Klarna’s XS2A API has been developed at scale across markets for almost 15 years through the Klarna Group company Sofort.
This platform provides a fully proven and mature infrastructure, superior market coverage and connectivity, with access to 99% of online banking consumers currently across 14 European markets.
By opening up its own advanced technology and capabilities, Klarna hopes to “simplify and democratise access to APIs securely.”
Koen Köppen, Chief Technology Officer at Klarna, commented: “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.”
Banks, fintechs and as other licensed businesses will be able to build offerings that meet the evolving needs of consumers across Europe.
Klarna stated they believe high-quality APIs will drive innovation and competition – equally empower consumers across Europe with increased choice, control and clarity on their finances and the ability to access alternative products.
Köppen continued: “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.”
Klarna’s Open Banking Platform will offer a combination of both account information services (AIS), providing consolidated information on payment accounts, and payment initiation services (PIS), enabling account to account direct bank transfers as licensed under PSD2.
The firms ‘XS2A PIS’ solution transferred over €10 billion in volumes and completed over 100 million transactions across markets in 2018.
George Parks Davie, Manager Open Banking Platform at Klarna, says: “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.”
