Klarna has begun the roll out of open banking-powered settlements in the UK.
The launch means consumers can now pay Klarna directly from their bank account instead of using a debit card. The move is seen as a significant boost to open banking in the UK, where approximately 5 million Brits use open banking payments each month.
For consumers, open banking settlements are simple, secure, and instant, with no need to enter payment details into an unknown retailer’s website. To make the payment, a consumer clicks on ‘Pay by bank’ which takes them to their mobile banking app where they complete the payment quickly and securely.
In this instance, consumers who link their bank account to Klarna, can get insights into all their spending within the Klarna app and access additional budgeting tools. Outside the UK, Pay Now by bank is already live in 10 countries globally.
Wilko Klaassen, VP, Open Banking at Klarna noted that a key benefit of the move will be the company’s ability to reduce the cost of payments as well as making better lending decisions based on up-to-date bank account data.
“This new launch builds on the success we have seen in 10 countries across Europe and will give UK open banking a major boost,” he said.
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