Form3 to assist Klarna's European payments

According to Form3’s officials, by providing SEPA connectivity to Klarna, the company intends to demonstrate its ability to process payments at scale. The partnership also solidifies the current trend in Europe for more organisations to connect directly to payment schemes to enhance resilience and their end customers’ experience. The collaboration allows Form3’s platform to process and manage all of Klarna’s inbound and outbound SEPA payments across these schemes and automate several of the manual payment processes for banks, including returns, recalls, and refunds. This is intended to increase efficiency and decrease costs, while Form3’s technology future-proofs Klarna against regulatory modifications such as the Digital Operational Resilience Act (DORA).

Representatives from Klarna stated that the partnership with Form3 can potentially support efficiency gains, and cost savings, as well as improve the overall customer and merchant experience in Europe. By leveraging Form3’s SEPA connectivity, Klarna can enhance its customer offering in Europe, while also advancing its wider growth strategy.

Founded in 2016, Form3 intends to improve payment processing and the traditional payment infrastructure model with its cloud-native, Payments-as-a-Service platform. Currently, the company’s solutions are used by the UK’s and Europe’s banks and fintechs to support their payment architecture. In recent months, Form3 entered multiple collaborations, including one with Though Machine to provide real-time payment technology to the US and European markets. By joining forces, the two companies intend to merge the firms’ solutions to offer banks and financial institutions an end-to-end service for secure and efficient real-time payment processing.

Moreover, at the beginning of September 2023, Visa invested in the cloud-native A2A platform to facilitate Form3’s expansion. The funding came along with the news that Form3 was set to provide Visa’s clients with access to their payments platform, enabling them to modernise their payments infrastructure. The two companies’ commercial partnership intended to combine their capabilities to reduce high levels of fraud in real-time A2A payments, including building on Form3’s single API connectivity.

At the end of July 2023, Form3 completed the testing and certification for the FedNow Service, the Federal Reserve’s instant payment offering. To receive the certification, Form3 met the requirements of the FedNow Service testing programme and attested its preparation to operate successfully in an instant payment environment. The company had been a participator in the FedNow Service Pilot Programme since July 2022.