Sweden’s Klarna Bank, which has become one of Europe’s major payment providers, has announced the launch of it own open banking platform, which will allow access to more than 4,300 European banks through a single access to account (XS2A) application programming interface (API).

Klarna described the launch as “all in line” with Europe’s revised Payment Services Directive, aka PSD2, and said the Klarna open banking platform will deliver a secure and mature infrastructure that offers access to 99% of online banking consumers across 14 European markets.

It added that in an open banking world, open connectivity and transparency is key and in launching its own platform, Klarna is making access to APIs simpler and quicker.

“By using open banking platforms, banks and fintechs will be able to develop personalised offerings to entice more customers. As the world becomes more digitally connected, consumers need constantly change. To keep up with the pace, the financial sector must embrace the new regulatory landscape,” the bank stated.

Try before you buy

“At Klarna, we have an unparalleled depth of experience and capabilities in XS2A, and for over 15 years, we have succeeded in the midst of huge complexity,” said chief technology officer, Koen Köppen.

“Now in the midst of further change and transformation from the PSD2 legislation and steps towards European open banking, we can enable other fintechs, banks and others to develop, test and bring new services and products to the market at a faster pace, through our platform and by integrating with our single API.

“Our technology allows us to offer an ecosystem of services not only to consumers but also to businesses – whether that’s in retail, financial services or technology. We look forward to seeing all new solutions and products that will grow out of this, creating a consumer centric financial services industry in Europe.”

Klarna was established in 2005 by Swedish entrepreneur Sebastian Siemiatkowski and launched in the UK two years ago. It has proved popular with Millennials thanks to its policy of “try before you buy”, which gives online shoppers up to 30 days to pay for their order.