Global digital bank and flexible payments provider Klarna has teamed up with the German Sparkassen-Finanzgruppe to roll out Variable Recurring Payments (VRP).
Through this move, all Klarna users with current accounts at participating savings banks are set to be able to make recurring payments directly from their bank accounts. This process will facilitate a more transparent, secure, and simplified experience for customers, with them not encountering strict direct debits, unexpected fees, and long processing times.
Additionally, launching VRPs will enable customers to set up monthly payment budgets from which recurring payments, including streaming services, memberships, or regular online purchases, are automatically deducted. Granted only once, authorisation is done through the personal Sparkasse of the customer in their S-pushTAN app. Afterwards, all payments within the approved budget are processed automatically, without the need to re-enter a TAN.
Furthermore, VRP allows customers to maintain control, with all active payment budgets visible in their online banking and deactivatable whenever they want. Executed payments appear instantly on their account statement. By working with Sparkassen-Finanzgruppe, Klarna is set to expand its payment network further, serving the needs and preferences of users across Europe.
Facilitating Open Banking across Europe
This rollout supports the advancement of Open Banking in Europe, with Germany positioning itself among the countries supporting payment innovation. VRPs represent a substantial part of Klarna’s commitment to developing a modern payment network. Europe’s Open Banking payments volume has increased significantly, with the boost being supported by a strong demand in Germany, where, according to recent data, usage scaled by 60% in 2024.
Moreover, among the potential benefits that the new offering brings, Klarna mentions:
- Scaled security, with protection against fraud facilitated through tokenized authorisation of transfers;
- Complete control, with monthly payment budgets having the option to be customised and managed at any time;
- Real-time transparency, as all executed payments appear immediately in the account;
- Simplified experience, as setting up a payment budget is efficient and secure, delivering convenience for everyday life.
