back Back

Klarna enables the UK gambling block for direct bank-to-bank payments

By Joy Dumasia

April 29, 2022

  • Bank to Bank Transfer
  • Europe
  • FinTech
Share

Klarna, Global-e, Cross Border e-commerce Platform, Flexible Payments, Pay in 4, Shopping Service, Retail Banking, CanadaKlarna, a leading global retail bank, payments and shopping service that helps consumers save time and money, be informed and be in control of their finances, announced it is enabling banks to extend voluntary gambling blocks to open banking-driven payments powered by its subsidiary, SOFORT, helping protect hundreds of thousands of UK consumers.  

Monzo was the first bank to introduce a gambling block in 2018, following demand from customers who wanted help controlling their use of gambling sites. Since then, most UK banks have followed Monzo’s lead. However, while gambling blocks are effective for payments made by card, open banking powered payments are often not covered. Klarna’s subsidiary SOFORT became the first provider to integrate the UK’s first Open Banking powered gambling block, developed by Monzo and Truelayer last year, who made the update code public. This will allow Monzo to extend their gambling block to all Klarna-powered, immediate bank-to-bank payments for Monzo’s UK customers. Currently, 400,000 Monzo customers have activated the gambling block.    

Klarna Kosma is one of the largest open banking aggregators in the world, providing connectivity to 15,000 banks worldwide. The network powers SOFORT, one of Klarna’s direct bank-to-bank payment methods used by 75,000 merchants across Europe, including some online gambling and gaming sites. Importantly, only immediate payments are allowed to online gambling and gaming sites; none of Klarna’s BNPL or other credit products can be used on gambling or gaming sites.  

With the update, Klarna has announced banks connected to SOFORT will be able to identify a payment request from a gambling or gaming company and, if there is a gambling block in place, block that payment, protecting their customers. The update code is available for banks and Open Banking providers to use, and the fix is quick, simple, and easy to build.  

Alex Marsh, Head of Klarna UK, commented: “We’re calling on banks and other open banking infrastructure providers to make this relatively small update which could help protect hundreds of thousands of UK consumers. Open banking has huge potential to increase competition and reduce costs, and as adoption grows, the industry must move quickly to make changes which can further improve the lives of UK consumers.”  

Previous Article

April 29, 2022

Cellulant partners with NALA to power remittance payments from the UK and USA into Africa

Read More
Next Article

April 29, 2022

What are the emerging trends in the Open Banking market?

Read More






IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

PayPoint & Lloyds Bank enhance merchant services for UK SMEs

Read More

Today

Moneyhub, Marygold & Co UK partner to launch new wealth app

Read More

Today

Premier Bank & Mastercard roll out Sharia-compliant cards in Kenya

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q3 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More