Klarna, the global digital bank and flexible payments provider, announced that is partnering with the German Sparkassen-Finanzgruppe to launch a new way to pay: Variable Recurring Payments (VRP). „This innovation enables all Klarna users with current accounts at participating savings banks to make recurring payments directly from their bank accounts — quickly, easily, transparently, and securely. No rigid direct debits, no unexpected fees, and no long processing times.” – according to the press release.
More flexibility when paying
With VRPs, customers can easily set up monthly payment budgets from which recurring payments — such as for streaming services, memberships, or regular online purchases — are automatically executed.
„Authorization is granted once via the personal Sparkasse of the customer in their S-pushTAN app, after which all payments within the approved budget are processed automatically — no need to re-enter a TAN. Customers always remain in full control: all active payment budgets are visible in their online banking and can be deactivated at any time. All executed payments appear instantly on their account statement.” – the company explained.
“VRP sets a new benchmark for digital payments for millions of consumers. With Variable Recurring Payments, Klarna offers a modern, account-based alternative to traditional direct debits — secure, fast, convenient, and fully transparent,” says Nicole Defren, Head of Northern and Central Europe at Klarna.
A major step forward for Open Banking
The launch of VRP also marks an important milestone for Open Banking in Europe, with Germany taking a leading role in payment innovation. Variable Recurring Payments are a key part of Klarna’s mission to build the payments network of the future.
Across Europe, the volume of Open Banking payments has grown by more than 200 percent, driven by strong demand in Germany, where usage increased by 60 percent in 2024 alone.
Benefits for customers
Enhanced security: Improved protection against fraud through tokenized authorization of transfers.
Full control: Monthly payment budgets can be customized and managed at any time.
Real-time transparency: All executed payments appear immediately in the account — with no delay.
Seamless experience: Setting up a payment budget is quick, secure, and effortless — for maximum convenience in everyday life.
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