Global payment network Klarna has integrated its bank-to-bank payment service Sofortüberweisung (Sofort) into Klarna Payments, citing increased security at checkout for both consumers and merchants.
The buy now, pay later provider entered the Open Banking arena with its acquisition of Germany-based Sofort in 2014.
Klarna has made the decision to consolidate the two services, meaning that the Sofortüberweisung function will be available as part of the Klarna ‘Pay Now’ product range from now on.
Sofortüberweisung has already been brought into the Klarna payment environment and launched across some of Klarna’s other markets globally, including the UK, earlier this year.
As a result, consumers can track their Sofortüberweisung payments within the Klarna app and make payments without having to re-enter their payment details, improving convenience and security.
The integration of the two payment services also provides increased protection, given that the Klarna user account uses two-factor authentication.
David Sykes, chief commercial officer at Klarna
To access these functions, customers must now create a Klarna account, with 95% of Sofort customers reported to have done this already.
“We are integrating Sofortüberweisung into the Klarna environment to offer consumers and merchants the best of both worlds: the familiar Sofort payment process combined with the smoother, more secure payment experience and global reach of Klarna,” David Sykes, Klarna’s chief commercial officer, said.
“The combined product is better for merchants and consumers, and also a platform for Klarna to expand the functionality of Sofortüberweisung globally.”
It confirmed that German consumers will continue to see the name ‘Sofortüberweisung’ in their payment process.
Klarna launched a new consent-based data sharing login service in February this year, called ‘Sign in with Klarna’. It allows consumers to speed up the online purchase process by using Klarna to automatically fill in their details.
