With this introduction, customers may now pay Klarna directly from their bank account rather than through a debit card, avoiding card networks and representing a significant step forward in the company's goal to create the payments network of the future.

For its Pay Now quick payment option, Klarna has already opened up open banking settlements. Pay in 30 and Pay in 3 are anticipated for later in 2024. Open banking receives a major boost in the UK with the debut of Klarna's 18 million UK members; over 5 million Brits use open banking payments monthly.

Open banking settlements are quick, easy, and secure for customers since they eliminate the need to submit payment information on the website of an unidentified shop. When a customer selects "Pay by bank," their mobile banking app opens, allowing them to swiftly and securely complete the payment.

When a customer joins their bank account to Klarna, they can access extra budgeting tools and view a breakdown of all their expenditure using the Klarna app. Additionally, by leveraging the customer's actual spending patterns, sharing bank data might help Klarna make more prudent loan decisions that precisely fit the consumer's budget.

By bypassing the well-established card payment networks and utilizing the most recent bank account information to make ever-better lending decisions, open banking presents Klarna with a significant chance to lower the cost of payments to society. This new launch will greatly enhance UK open banking and builds on the success we have witnessed in other European nations. VP of Klarna's Open Banking, Wilko Klaassen, stated.

In ten other countries outside the UK, Pay Now by bank is currently operational and is regularly utilized by more than 20 million customers every month.