Klarna Goes Cosmic with Open Banking Business Unit Launch

“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."

Fintech firm Klarna is tapping into the open banking craze with a new sub-brand and business unit.

Called ‘Klarna Kosma’, the retail bank, payments and shopping service is looking to create its own profitable cosmos.

“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,” explains Yaron Shaer, CTO, Klarna.

According to Klarna, Kosma provides access to 15,000 banks in 24 countries through a single API. The new business unit will “harness the massive growth Klarna has seen in this area”, having more than doubled the number of connected banks in the past year. Today, Kosma processes close to a billion information requests to bank accounts each year.

The platform is already in use in Europe. FINOM, for example, is an Amsterdam-based startup which offers financial management, business banking and billing services to SMEs and freelancers in France, Germany and Italy. It integrated with Klarna to create digital invoices, which include a ‘Pay Now’ button which allows the payment directly from the invoice.

Klarna first entered the open banking space when it acquired SOFORT, a direct bank-to-bank payment service in Germany, in 2014. Since then Klarna has developed the service, and now uses open banking to power account insight services (AIS) which provide spending insights to shoppers directly in the Klarna shopping app,

It’s not just about Klarna and its relentless display of positive vibes. Open banking in the UK has certainly caught on.

Last month, its popularity increased in style with the stats revealing there were more than five million active users.

London-based unicorn TrueLayer is usually busy in this field as well. In February it picked up a new open banking deal with Douugh in Australia.

Klarna is a powerful force in fintech. It has over 147 million global active users and two million transactions per day,

It also has over 400,000 global retail partners, including H&M, Saks, Sephora, Macys, IKEA, Expedia Group and Nike.

Klarna has over 5,000 employees, is active in 45 markets and has a valuation of $45.6 billion (£34.7 billion).

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.

Popular Articles