8.6 C
New York
Monday, May 27, 2024
Home Challanger banks Klarna has launched new openbanking brand called Kosma

Klarna has launched new openbanking brand called Kosma

With Kosma, the Swedish payment provider Klarna is launching its own brand for its open banking function, which is aimed at financial service providers.

Read also: Italy’s financial regulator imposes a ban against N26

The acquired German subsidiary Sofort GmbH laid the foundation for the business.

Under the new brand, Klarna offers an API (Application Programming Interface) that can be used by other entities. This way, they will be able to focus on developing their own product. 

Dealers, fintechs or financial service providers can use the bank accounts function via an interface. 15,000 banks in Europe and the US would be available for the service, it said.

Visa surprised the European fintech industry as it announced that it would acquire Tink for €1.8 billion ($2.15 billion at the time of the deal). Klarna now wants to compete directly with Tink with a new business unit that has its own brand.

Ahead of the launch of Klarna Kosma, a new Open Banking brand, Wilko Klaassen, the company’s VP Business Development, reveals how Klarna’s disruptive DNA can help partners shake up the Open Banking market with new data applications:

“For Klarna, Open Banking is an exciting journey that began in 2004 with SOFORT (a Klarna company) payments and went into hyper-drive in 2018 with PSD2. It has given us a chance to re-bundle and democratise financial services – and it grants users the power to determine what happens to their data.”

“In this respect, OB is not just helpful but fundamentally necessary. It provides a single standard, allows scalability, and ensures the quality of interactions and consent management required for banks to let third parties access their data networks.”

“We see a lot of potential outside the more traditional target audience (banks & fintechs). Big merchants and financial management software companies are starting to use OB to better serve their clients. Klarna Kosma can help these industries bring whole product offerings to market much sooner and at a lower cost based on the building blocks that we deliver,” adds Klasseen

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

NEW Revolut UK CEO to make Conference Debut at MoneyLIVE Summit

MoneyLIVE has today announced that Revolut’s newly appointed UK CEO will be making her conference debut at MoneyLIVE Summit 2024, which is...

2024’s Financial Innovators: A New Era of Banking Startups 

In the wake of the COVID-19 pandemic, our world witnessed an unprecedented shift towards digitalization. The banking industry, in particular, has been...

C-suite Banking and Payments Leaders From Across Europe Set to Meet at London’s MoneyLIVE Summit in March

On the 6-7 March 2024 MoneyLIVE Summit will return to London’s QEII Centre to unite over 1000 banking and payments leaders from...

The Evolution of Digital Wallets: A Shift from Physical Cards by 2030

By 2030, we can expect digital wallets to become the preferred payment instrument, offering a myriad of non-payment-related services for consumers.