- Klarna, a Buy Now, Pay Later (BNPL) firm, has partnered with UK paytech Form3 for payment connectivity in the Single Euro Payment Area (SEPA).
- Klarna is using Form3’s cloud-based, single API account-to-account platform to gain technical access to STEP2 and RT1, operated by the European Central Bank (ECB), for instant payments across Europe.
- Connecting to STEP2 and RT1 allows Klarna to process payments directly, eliminating the need for third-party banks and automating manual processes like refunds, returns, and recalls through Form3.
- The partnership aligns with Klarna’s strategic plan to strengthen its European offering, aiming for a potential billion-dollar stock market flotation in the near future.
- Klarna’s Head of Banking sees the partnership’s potential for efficiency gains, cost savings, and an enhanced user experience, while Form3’s CEO recognizes it as part of an ongoing trend in Europe for direct connections to payment schemes.
