Global payment network Klarna announced that has integrated its bank-to-bank payment service Sofortüberweisung (Sofort) into Klarna Payments, citing increased security at checkout for both consumers and merchants.
„With this, Klarna consolidates two well-known services: The Sofortüberweisung function will from now on be available as part of the Klarna Pay Now product range. The aim is to increase the security of the checkout process for both consumers and merchants and to optimize user-friendliness. Consumers in Germany will continue to see the name „Sofortüberweisung” in their payment process.” – according to the press release.
The buy now, pay later provider entered the Open Banking arena with its acquisition of Germany-based Sofort in 2014.
Klarna has made the decision to consolidate the two services, meaning that the Sofortüberweisung function will be available as part of the Klarna ‘Pay Now’ product range from now on.
David Sykes – Chief Commercial Officer: „We are integrating Sofortüberweisung into the Klarna environment to offer consumers and merchants the best of both worlds: the familiar Sofort payment process combined with the smoother, more secure payment experience and global reach of Klarna. The combined product is better for merchants and consumers, and also a platform for Klarna to expand the functionality of Sofortüberweisung globally.”
The improved user-friendliness has led to a 5% increase in the conversion rate for consumers who use Sofortüberweisung integrated into Klarna.
Klarna has already brought Sofortüberweisung bank-to-bank payment service into the Klarna payment environment and launched it across some of Klarna’s other markets globally, including the UK earlier this year.
As a result, consumers can track their Sofortüberweisung payments within the Klarna app and make payments without having to re-enter their payment details, improving convenience and security. The integration of the two payment services also provides increased protection, given that the Klarna user account uses two-factor authentication.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
