Fintech Belgium Summit 2018: Open Banking - Klarna by Aoife Houlihan
+800.000 transactions per day
500 Million purchases and counting
Annual sales volume growth 40 %+
10 % E-commerce Market Share in
Full Banking license since June 2017
70 million consumers
90 thousand merchants
Founded in 2005.
Backed by prominent investors like Sequoia
Acquired Sofort in 2013
It’s also true that many companies get
comfortable doing what they have always
done, with a few incremental changes. This
kind of incrementalism leads to irrelevance
over time, especially in technology, because
change tends to be revolutionary not
evolutionary. So you need to force yourself to
place big bets on the future.
in How Google Works
Klarna is placing big bets on
PSD2 and Open Banking!
Our Open Banking team is
+100 people strong, and our
bank connectivity team, which
supports access to Banks (via
APIs or direct access) is already
35 people and growing!
The European banking
landscape is going
through a massive
Roll out of PSD2 and Bank APIs
for initiating SCTs, leading to
the democratization of bank
Evolution of instant payments
in many markets, leveraging
PSD2 further by making
payments "real time".
Increased focus on customer
experience and roll out of
differentiated solutions, empowered by
regulatory and infrastructure
developments in Europe!
More secure than card
payments in eCommerce,
with strong authentication.
pricing than cards,
Bank ecosystem is
back at the core of
From Silicon Valley
startups to established
All have started a race to
take a leading position
Banking as a Service
Performance of solution
● Many solutions have not been deployed and tested at scale
● Scalability, availability, and agility to update interfaces are not proven.
A PSD2 product strategy
● This has become a favorite topic of consultants!
● Most interesting initiatives tackle specific industry problems and focus on improved customer
Security and fraud prevention
● Strong authentication is not sufficient to prevent other types of fraudulent activities.
● Advanced fraud prevention solutions are necessary to ensure trust and prevent losses.
● E.g. tricking the bank to initiate a transaction with money that you don't have.
Marketing claims vs. real products
● As PSD2 developments are relatively recent, it's not uncommon to see marketing claims leading
the way, while the "real" product is developed in parallel.
There are some challenges...
A relentless focus
on creating the
in the industry
Klarna provides a consistent UX regardless of touchpoint.
Klarna tackles issues that different bank interfaces impose and provide
a consistent user experience, regardless of authentication method used
by the bank. Even if a proprietary device is needed.
Klarna bridges the current lack of APIs (or a standard for those) by
aggregating all available APIs and direct access.
Easy login. Easy payments.
Optimized login screens allow users
to login using their normal bank
authentication methods, without
leaving the app or screen.
Klarna enhances security by encrypting the
client provided information on the website
before submitting it to the bank.
Klarna unifies and
authentication methods by
performing A/B testing.
Simplification results in higher conversion rates
Improved online banking security
Login optimized for more than 4000 banks
It’s all about