What is Klarna's role in open banking and open finance?
Klarna is both a user and a provider of open banking. It entered the field in 2014 by buying Sofort, a German bank-to-bank payment service, which it consolidated into Klarna Bank in December 2024. In March 2022 it opened its platform to other companies as Klarna Kosma, an API for account statements, banking information and payment initiation covering 15,000 banks in 24 countries; in July 2023 it folded the Kosma brand back into Klarna, saying the business would carry on. In March 2024 Klarna said Pay Now by bank was live in 10 countries and used by over 20 million consumers a month as it began rolling out open banking settlements to its 18 million UK customers. Its FY2025 20-F says Klarna believes it operates one of the largest account-to-account networks in Europe and the United States, with direct connectivity to over 15,800 banks as of December 2025, and that its real-time underwriting combines credit bureau data, internal insights and open banking data. In the EU its payment services are governed by PSD2, implemented in Sweden through the Payment Services Act. The 20-F does not mention PSD3, the EU's proposed financial data access rules or CFPB Section 1033, and Klarna does not report open banking volumes or revenue.[1][2][3][4]
Data as of Oct 22, 2026 · Klarna profile updated Oct 19, 2026 · 11 sources cited on this page · 52 fintechs profiled on this site · Markdown
How has Klarna's open banking business developed?
| Move | What happened | Date |
|---|---|---|
| Sofort acquisition | Klarna bought Sofort, a direct bank-to-bank payment service in Germany, and later expanded it into dozens of markets and used open banking to power in-house services | 2014[1] |
| US bank debit through GoCardless | GoCardless chosen to offer bank debit payments to Klarna's more than 21 million US customers for Pay in 4 and financing; GoCardless said it had worked with Klarna in the UK since 2018 | December 14, 2021[5] |
| Klarna Kosma launched | A separate brand and API letting other companies access account statements, initiate payments and fetch banking information across 15,000 banks in 24 countries; CTO Yaron Shaer said Klarna was "opening up the power of our proprietary Open Banking platform" | March 31, 2022[3] |
| Gambling block on open banking payments | Sofort became the first provider to integrate the UK open banking gambling block developed by Monzo and TrueLayer, letting connected banks block payment requests to gambling merchants | April 28, 2022[6] |
| Kosma sandbox | Three months of free access for selected start-ups, capped at 300 transactions or active users a month; Kosma then covered 15,000 banks across 27 countries | November 21, 2022[7] |
| Kosma brand retired | The brand was folded under the Klarna corporate brand; Klarna said the decision reflected the unit's success and there would be no job losses | July 31, 2023[1] |
| Direct SEPA access via Form3 | Form3's single API connects Klarna to STEP2 and the RT1 instant-payment system, so Klarna can process payments without a third-party bank | November 22, 2023[8] |
| UK open banking settlements | Consumers can pay Klarna from their bank account instead of a debit card, starting with Pay Now; Pay in 30 and Pay in 3 were scheduled for later in 2024 | March 14, 2024[4] |
| Sofort folded into Klarna Bank; 15,800 banks connected | Sofort consolidated into Klarna Bank in December 2024; direct connectivity to over 15,800 banks as of December 2025 | 2024–2025[2] |
How does Klarna use open banking data and account-to-account rails?
In credit, the FY2025 20-F says Klarna builds "real-time views of a consumer's financial situation when underwriting, by combining credit bureau data, internal insights and open banking data", making a new decision for every purchase. Its 2024 UK release said bank data helps Klarna lend "using the consumer's real spending habits".[2][4]
In payments, the account-to-account network lets consumers Pay in Full (debit) and settle by direct bank transfer, which the 20-F says removes middlemen and lowers fees. Klarna's VP of open banking, Wilko Klaassen, said in March 2024 that open banking lets Klarna "reduce the cost of payments to society by cutting out the established card payment networks".[2][4]
For consumers, linking a bank account to Klarna gives spending insights and budgeting tools in the app, Klarna said in 2024. The 20-F adds that Klarna balance, introduced in 2024, lets consumers Pay in Full or Pay Later without connecting a bank account or card.[4][2]
Which open banking rules apply to Klarna, and what does it not disclose?
Klarna Bank's payment services are governed by the Swedish Payment Services Act, which implemented PSD2, under Finansinspektionen's supervision; in the UK, Klarna's subsidiary KFSUK is authorized by the FCA to provide payment services under the Payment Services Regulations 2017, per the 20-F.[2]
The 20-F defines open banking as a framework under which banks are required or permitted to share consumer financial data with authorized third parties through standardized APIs, subject to consent. It does not mention PSD3, the EU's proposed financial data access regulation or the CFPB's Section 1033 rule, so Klarna's position on them is not on the record in its annual report.[2]
What is not disclosed: Pay Now by bank volumes since the March 2024 figure of over 20 million monthly users, open banking revenue, how many of the 15,800 bank connections run on dedicated APIs, and how many outside companies use the former Kosma platform.[4][2][1]
What does the Klarna profile record on this topic?
The rows below are the entries of the Klarna AI strategy profile that bear on this page, as of Oct 19, 2026; the profile holds the full record of 11 dated moves, 7 use cases and 15 sources.
| Use case | What the record shows | Status | Source |
|---|---|---|---|
| Real-time underwriting | Klarna discloses using machine-learning techniques to enable its real-time credit-underwriting process, drawing on proprietary transaction data from its consumer and merchant network. | In production | [9] |
| Real-time fraud detection | Established ML techniques used for real-time fraud detection and prevention across the payments network, per the IPO prospectus. | In production | [9] |
| AML and sanctions screening | ML used for anti-money-laundering and sanctions screening; Finansinspektionen fined Klarna Bank AB SEK 500 million in December 2024 for AML rule violations found in a 2021-22 examination, including gaps in risk assessment and customer-due-diligence procedures. | In production | [9][10] |
| Date | Move | Detail | Source |
|---|---|---|---|
| Jul 6, 2026 | Klarna applies for a US industrial-bank charter | Klarna filed with the Utah Department of Financial Institutions and the FDIC to form Klarna Bank USA, an FDIC-insured Utah industrial bank, to fund loans with deposits and bring more payments, lending and merchant operations in-house. | [11] |
What was Klarna Kosma?
Klarna Kosma was the open banking business unit and API Klarna launched on March 31, 2022, giving other companies account data and payment initiation across 15,000 banks in 24 countries. Klarna retired the Kosma brand in July 2023 and folded the business under the Klarna name, saying it would continue to operate.
Does Klarna use open banking data for credit decisions?
Yes. Klarna's FY2025 20-F says its real-time underwriting combines credit bureau data, internal insights and open banking data to judge a consumer's financial position at the moment of purchase, alongside merchant data and the consumer's history with Klarna.
Can you pay Klarna by bank transfer?
Yes, in many markets. Klarna said in March 2024 that Pay Now by bank was live in 10 countries and used by over 20 million consumers a month, and that UK customers could now settle Klarna payments from their bank account through open banking instead of a debit card.
How many banks is Klarna connected to?
Klarna's FY2025 20-F says it has direct connectivity to over 15,800 banks as of December 2025 and believes it runs one of the largest account-to-account networks in Europe and the United States. Kosma covered 15,000 banks in 24 countries at its 2022 launch.
What does Klarna say about PSD3 or the US open banking rule?
Nothing in its FY2025 annual report. The 20-F describes PSD2 and the UK Payment Services Regulations as the rules governing its payment services, but does not mention PSD3, the EU financial data access proposal or the CFPB's Section 1033 rule.
- Klarna ditches open banking brand
- Klarna Group plc Annual Report (Form 20-F) for the fiscal year ended December 31, 2025
- Klarna launches new Klarna Kosma division for its open banking platform
- Klarna adds open banking settlements for 18 million consumers and 32,000 retailers
- Klarna taps GoCardless for bank debit payments in the US (GoCardless release)
- Klarna brings gambling block to open banking payments
- Klarna launches new open banking sandbox initiative
- Klarna prepares for SEPA instant payments with Form3 partnership
- Klarna Group plc Prospectus (Form 424B4)
- Klarna får en anmärkning och sanktionsavgift
- Klarna seeks U.S. bank charter in latest push beyond buy now, pay later
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