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Klarna adds open banking settlements for 18 million consumers and 32,000 retailers


Klarna, the AI-powered payments network and shopping assistant, has begun to roll out 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, bypassing card networks and marking a major milestone in Klarna’s ambition to build a payments network of the future.

Klarna has already launched open banking settlements for its Pay Now instant payment option, and Pay in 30 and Pay in 3 scheduled for later in 2024. The launch to Klarna’s 18 million UK customers gives open banking a significant boost in the UK, where approximately 5m 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.

A consumer who links their bank account to Klarna can get insights into all their spending within the Klarna app and access additional budgeting tools. Plus, sharing bank data can help Klarna lend money more wisely, using the consumer’s real spending habits, to ensure that Klarna’s lending decisions are an exact fit with the consumer’s budget.

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