Klarna integrates new payment service for improved security

Klarna acquired the German-based company Sofort in 2014, marking its entry into the Open Banking sector. The integration means that Sofortüberweisung will now be available as part of Klarna’s 'Pay Now' options. 

Earlier this year, Klarna extended the Sofortüberweisung service to additional markets, including the UK. The integration allows users to manage Sofortüberweisung payments within the Klarna app, offering greater convenience by eliminating the need to re-enter payment details. This setup also benefits from increased security through Klarna’s two-factor authentication system. 

To use these features, customers are required to create a Klarna account, and it has been reported that 95% of Sofort users have already made this transition. The name ‘Sofortüberweisung’ will continue to appear in the payment process for German users. 

Additionally, Klarna introduced a new service in February called ‘Sign in with Klarna,’ which allows users to expedite online purchases by automatically filling in their details.

What else has Klarna been up to?

One of Klarna’s most noteworthy partnerships in 2024 involved working with Adobe Commerce in July to allow merchants to implement its BNPL services.  In a bid to expand payment flexibility for consumers, Klarna partnered with Adobe Commerce to provide merchants with the ability to implement its Buy Now, Pay Later (BNPL) solutions and other additional payment options. 

As a digital commerce solution for merchants and brands, Adobe Commerce allows them to create a more engaging shopping experience for their users, including B2B, B2C, and B2BB2C. At the time of writing, the company supports retailers, consumer brands, manufacturers, and wholesale distributors worldwide. 

In the same month, sources cited by the Financial Times reported that Klarna was preparing for an initial public offering in the US with  Morgan Stanley, JPMorgan, and Goldman Sachs being expected to lead the process. Klarna's executives and advisers believe that the IPO market will recover by 2025, which influenced their decision to pursue the listing. 

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