Klarna Takes Aim at Visa, Mastercard With Open Banking Push
- UK consumers will be able to pay directly from a bank account
- Move will help fintech company cut card acceptance costs
Klarna said in a statement it will give consumers who link their bank accounts to its app access to budgeting tools.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Klarna Bank AB will begin allowing users in the UK to make payments directly from their bank accounts as part of the fintech giant’s efforts to reduce its reliance on Visa Inc. and Mastercard Inc.
Initially, the move will help Klarna cut costs because bank payments are cheaper than accepting Visa and Mastercard’s products, according to a person familiar with the matter. Longer term, though, the product will help Klarna create a stronger alternative to the payment giants’ networks, the person said, asking not to be identified discussing non-public information.