<div>
  <p>
  </p>
  <ul>
    <li>
      <p>
        Sweden-based Klarna, a BNPL provider, launches open banking-powered settlements in the UK, allowing users to make payments directly via their bank accounts.
      </p>
    </li>
    <li>
      <p>
        Klarna&rsquo;s open banking-powered payments aim to reduce payment costs and improve lending decisions by bypassing traditional card networks and using up-to-date bank account data.
      </p>
    </li>
    <li>
      <p>
        Klarna users click &ldquo;Pay by bank&rdquo; to pay via their bank app; linked bank data allows Klarna to offer consumers insights into their spending and other budgeting tools and make lending decisions based on spending habits.
      </p>
    </li>
    <li>
      <p>
        <b>Analyst QuickTake: </b>
        The SEPA Payment Account Access Scheme (SPAA), led by the European Payments Council, extends beyond the EU's Payment Services Directive (PSD2) requirement, offering banks ways to monetize their open banking APIs and foster collaboration between banks and FinTechs. In recent months, various FinTech infrastructure providers, such as 
        <a href="https://sp-edge.com/updates/25545">
          TrueLayer
        </a>
        , 
        <a href="https://sp-edge.com/updates/25924">
          Token
        </a>
        , 
        <a href="https://sp-edge.com/updates/26940">
          Tink
        </a>
        , and 
        <a href="https://sp-edge.com/updates/27100">
          Volt
        </a>
        , have joined SPAA to improve open banking monetization.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


<div>
  <p>
    <a href="https://www.pymnts.com/news/banking/2024/klarna-adds-open-banking-for-customers-in-the-uk/">
      PYMNTs
    </a>
  </p>
  <p>
    <a href="https://www.bloomberg.com/news/articles/2024-03-14/klarna-takes-aim-at-visa-mastercard-with-open-banking-push">
      Bloomberg
    </a>
  </p>
</div>


Buy Now, Pay Later

ANALYST_QUICK_TAKE

PROMINENT_CATEGORY

<div>
 
 <p>Swedish company Klarna, which offers Buy Now Pay Later services, has introduced open banking-powered transactions in the United Kingdom. This move allows its consumers to make payments directly from their bank accounts.</p>
 
 <p>The aim behind introducing open banking payments is to decrease the cost of transactions and improve lending decisions. This is achieved by avoiding standard card networks and instead utilizing current bank account information.</p>
 
 <p>In order to pay via their banking application, Klarna users simply need to select the "Pay by bank" option. By linking bank data, Klarna can provide consumers with insight into their spending, offer budgeting tools, and make more informed lending decisions based on spending behaviour.</p>
 
</div> <p><b>Analyst QuickTake:<br>
 </b> The SEPA Payment Account Access Scheme (SPAA), led by the European Payments Council, extends beyond the EU's Payment Services Directive (PSD2) requirement, offering banks ways to monetize their open banking APIs and foster collaboration between banks and FinTechs. In recent months, various FinTech infrastructure providers, such as <a href="https:<br>
//sp-edge.com/updates/25545"> TrueLayer </a> , <a href="https:<br>
//sp-edge.com/updates/25924"> Token </a> , <a href="https:<br>
//sp-edge.com/updates/26940"> Tink </a> , and <a href="https:<br>
//sp-edge.com/updates/27100"> Volt </a> , have joined SPAA to improve open banking monetization.</p>

Klarna launches open banking-powered settlements in UK

<div>
 
 <p>Swedish Buy Now, Pay Later (BNPL) provider, Klarna, has been penalized SEK 7.5 million (approximately USD733,324) by a court of appeal in Sweden for breaching the General Data Protection Regulation (GDPR) of the EU. The violation was due to Klarna's failure in providing adequate information to its users about the management and storage of their personal data.</p>
 <p>The GDPR of the EU requires companies to transparently disclose details about data collection, usage, and storage that pertains to personal user information. This case was focused on privacy notes that Klarna used from March to June 2020. The court found these notes were either unclear or challenging for users to access. Klarna has since updated these privacy notes.</p>

</div> <p><b>Analyst QuickTake:<br>
 </b> The legal imposition comes amidst Klarna’s anticipated <a href="https:<br>
//sp-edge.com/updates/27044"> US IPO </a> in Q3 2024 with a USD 20 billion valuation after the company announced plans in November 2023 to <a href="https:<br>
//sp-edge.com/updates/23500"> incorporate a new holding company </a> in the UK preluding its market floatation.</p>

Klarna fined SEK 7.5 million (~USD 733,324) over insufficient GDPR information

<div>

<p>Klarna, a Swedish BNPL (Buy Now, Pay Later) provider, is planning a US IPO (Initial Public Offering) potentially for Q3 this year. The company is in talks with investment banks to facilitate this move.</p>
<p>The company aims for a market valuation of approximately USD 20 billion. However, sources highlight that details and timings for the IPO could change in the latter part of the year.</p>

</div> <p><b>Analyst QuickTake:<br>
 </b> Today’s news on Klarna’s anticipated IPO follows nearly three months after the company announced incorporating a <a href="https:<br>
//sp-edge.com/updates/23500"> new holding company in the UK </a> in preparation for the IPO after being <a href="https:<br>
//sp-edge.com/updates/11559"> valued at USD 6.7 billion </a> after the company’s USD 800 million funding round in July 2022—taking a steep discount from its <a href="https:<br>
//sp-edge.com/updates/5159"> valuation of USD 45.6 billion </a> , when it raised USD 689 million in June 2021.</p>

Klarna aims for potential IPO in Q3 2024 with USD 20 billion valuation

<div>
 <p>Swedish BNPL provider Klarna has introduced Klarna Plus, a $7.99/month subscription service. Subscribers will enjoy free service fees, double reward points, and unique deals with retail partners like Nike and Instacart. Klarna Plus allows purchases outside its network of 500,000 businesses, such as Walmart, Target, Amazon, and Costco. Transaction fees ranging from $1-$2 will be eliminated. Klarna Plus aims to diversify Klarna's services, provide steady revenues, and maintain investor faith in its core products, particularly as it considers an IPO after a <a href="https://sp-edge.com/updates/11559"> valuation drop </a> in 2022.</p>
</div> <p><b>Analyst QuickTake: </b> The launch of Klarna Plus comes nearly two months after the company announced plans last year to <a href="https://sp-edge.com/updates/23500"> incorporate a UK holding company </a> for its 2024 IPO, valued at USD 15 million–20 million.</p>

Klarna announces Klarna Plus ahead of potential IPO

Democratizing financial technology with a suite of API-based solutions

FinTech Infrastructure

<div>
 <p>Payment infrastructure provider, Adyen, has extended its partnership with Klarna, a Swedish BNPL provider. From 2024, Adyen will function as the acquiring bank for Klarna in Europe, North America, and Asia. The extended partnership will allow Adyen to offer merchant banking services that will simplify card payments between Klarna’s customers and retail partners.</p>
</div> <p><b>Analyst QuickTake: </b> Today’s partnership news comes nearly two weeks after <a href="https://sp-edge.com/updates/24253"> Klarna partnered with Form3 </a> to support European payment processing and two months since Marqeta partnered <a href="https://sp-edge.com/updates/22806"> with Scalapay </a> to allow users to make flexible payments for online and in-store transactions across Europe.</p>

Adyen extends partnership with Klarna to become its acquiring bank

<div>
 
 <p>Swedish BNPL provider, Klarna, has expanded its partnership with Adyen, a payment infrastructure service. The main goal is to simplify card interactions between customers and retail partners. By leveraging Adyen's merchant banking capacities, Klarna plans to streamline card payments among its 150 million consumers and 500,000 retail partners spread across Europe, North America, and Asia from 2024.</p>
 
</div> <p><b>Analyst QuickTake</b> : <b> </b> Today’s partnership news comes nearly two weeks after <a href="https://sp-edge.com/updates/24253"> Klarna partnered with Form3 </a> to support European payment processing and following the company’s <a href="https://sp-edge.com/updates/21658"> partnership with APEXX Global </a> to grow its platform’s reach within the travel sector (October).&nbsp;</p>

Klarna extends partnership with Adyen to streamline card payments

<div>
 <ul>
  <li><p>Sweden-based <strong>Klarna</strong>, a BNPL provider, has partnered with <strong>Form3</strong>, a cloud-based payment processing platform, to utilize Form3's extensive payment processing capabilities supporting European transactions and payments.</p></li>
  <li><p>Through this partnership, Klarna intends to leverage Form3’s SEPA instant, credit transfer, and direct debit connectivity to process transactions and payments with its active customers and merchants in Europe.</p></li>
 </ul>
</div> <p><b>Analyst QuickTake</b> : Today's partnership news comes nearly four months after Form3 completed testing and secured its <a href="https://sp-edge.com/updates/20436"> FedNow SM Service certification </a> . Moreover, last month, <a href="https://sp-edge.com/updates/23010"> Thought Machine partnered with Form3 </a> to leverage this certification to offer real-time payment processing in the US and Europe.</p>

Klarna partners with Form3 to support European payment processing

<div>
  <ul>
    <li>
      <p>Sweden-based Klarna, a BNPL provider, has partnered with Form3, a cloud-based payment processing platform, to utilize Form3's extensive payment processing capabilities supporting European transactions and payments.</p>
    </li>
    <li>
      <p>Through this partnership, Klarna intends to leverage Form3’s SEPA instant, credit transfer, and direct debit connectivity to process transactions and payments with its active customers and merchants in Europe.</p>
    </li>
  </ul>
</div> <p><b>Analyst QuickTake</b> : Today's partnership news comes nearly four months after Form3 completed testing and secured its <a href="https://sp-edge.com/updates/20436"> FedNow SM Service certification </a> and <a href="https://sp-edge.com/updates/23010"> Thought Machine partnered with Form3 </a> to leverage this certification to offer real-time payment processing in the US and Europe (last month).</p>

DISRUPTOR_PRESENT

<div>
 <ul>
  <li><p>Klarna, a Swedish BNPL provider, plans to incorporate a new holding company in the UK, preluding to its anticipated listing during the first half of 2024, with an expected IPO valuation of USD 15 million–20 million.</p></li>
  <li><p>The company stated the reason for incorporating its new holding company in the UK is for its prominence from a legal, regulatory, and capital markets perspective. However, the company did not confirm it will list in the UK despite incorporating its new holding company in the UK.</p></li>
  <li><p>According to Sebastian Siemiatkowski (co-founder and CEO), the company has achieved all three conditions as stated in August prior to proceeding with its anticipated IPO, i.e., becoming established in the US, operating a sustainable business model, and demonstrating growth potential.</p></li>
 </ul>
</div> <p><b>Analyst QuickTake: </b> Today’s news comes over a year from being <a href="https://sp-edge.com/updates/11559"> valued at USD 6.7 billion </a> after the company’s USD 800 million funding round in July 2022, taking a steep discount from its <a href="https://sp-edge.com/updates/5159"> valuation of USD 45.6 billion </a> , when it raised USD 689 million in June 2021.</p>

Klarna plans to incorporate new holding company in UK preluding its market floatation

Klarna has introduced an image recognition feature in its app that allows users to find similar products by scanning items using their phones. The AI-based tool is trained on data from PriceRunner, a price comparison service provider that Klarna acquired earlier this year. Users can simply point their phones at clothing or electronics and receive recommendations for similar items within the Klarna app.

All Updates

Klarna launches open banking-powered settlements in UK

Klarna fined SEK 7.5 million (~USD 733,324) over insufficient GDPR information

Klarna aims for potential IPO in Q3 2024 with USD 20 billion valuation

Klarna announces Klarna Plus ahead of potential IPO

Adyen extends partnership with Klarna to become its acquiring bank

Klarna extends partnership with Adyen to streamline card payments

Klarna partners with Form3 to support European payment processing

Klarna partners with Form3 to support European payment processing

Klarna plans to incorporate new holding company in UK preluding its market floatation

Klarna launches AI image recognition tools on shopping app