Klarna launches ‘Klarna Kosma’ sub-brand and business unit

Klarna, the leading global retail bank, payments, and shopping service that helps consumers save time and money, be informed and be in control, today launched ‘Klarna Kosma’, a sub-brand and business unit to harness the rapid growth of its world-leading Open Banking platform. 

Kosma makes it easy to access more banks than any Open Banking provider. This allows new fintech services to be quickly launched on a global level and gives the foundation for future innovation in financial services. Kosma gives financial institutions, merchants, and fintechs the connectivity they need to create the next generation of fintech apps. It provides easy and secure access through one API to 15,000 banks from 24 countries. Klarna saw a tremendous increase in this market and has nearly doubled the number connected banks over the past year. The new business unit will capitalize on that growth. Kosma handles close to a million information requests for bank accounts every year. 

“With Kosma we are opening up the power of our proprietary Open Banking platform and technology to banks, merchants and fintechs who share our dream of a world where consumers own their data and banks compete for customers by delivering value, not by locking in data,” says Yaron Shaer, CTO, Klarna.

It is being used already to power many consumer- and business-focused innovation. FINOM, for instance, is an Amsterdam-based startup that offers business banking, financial management and billing services to SMEs in France, Germany, and Italy. They integrated with Klarna to create a new generation of digital invoices, which include a ‘Pay Now’ button that allows the payment directly from the invoice., helping their small and micro-business clients to collect their money much faster, improving cash flow. Konstantin Stiskin (supervisory board member, co-founder at FINOM) says: “Over 5000 business clients of FINOM are already using Klarna solutions to improve their lives. The backbone of the European economy is the professionals and SMEs. However, they are often underserved in financial services and banking. At FINOM we work every day to address this issue, providing European entrepreneurs the best tools to make their work and life easier.”

ZealiD is a digital signature and identity service that allows consumers to register online and sign-in securely. The service uses Klarna’s Open Banking platform to identify and validate the consumer’s identity in a simple and innovative way, from ZealiD’s user-friendly app, replacing the outdated requirement to provide a bank statement as proof of address. Philip Hallenborg is the founder and CEO of ZealiD. Thanks to Klarna, ZealiD could implement the solution quickly, connecting to hundreds of banks across all EU member states.” 

Klarna was first to enter the Open Banking market in 2014 when it acquired SOFORT in Germany. SOFORT is a leading direct bank–to-bank payment system in Germany. Klarna has continued to develop the service, expanding it into other markets and using Open Banking for additional services. Klarna uses Open Banking now to power Account Insight Services, which provides real-time spending insights to millions via Klarna’s shopping app. 

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“Over the past year, the demand for Open Banking services from financial institutions and fintech start-ups, has reached a tipping point,” says Wilko Klaassen, VP, Klarna Kosma, “which is why we have built a dedicated business unit which brings together engineering, product management, sales and marketing all together in the same team to focus on this $15bn, fast-growing market.”

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