Klarna integrates Sofort payment service with Klarna Payments

By Gloria Methri

Klarna has integrated its bank-to-bank payment service Sofortüberweisung (Sofort) into Klarna Payments to improve checkout security for both consumers and merchants.

Klarna acquired German-based Sofort in 2014, marking its entry into the Open Banking arena. Since then, Sofortüberweisung has already been integrated into the Klarna payment environment, and its services have expanded across other markets globally, including the UK.

The integration means that the Sofort function will now be available as part of Klarna’s ‘Pay Now’ product range. Consumers in Germany will continue to see the name “Sofortüberweisung” in their payment process.

With this innovation, consumers can now track their Sofort payments within the Klarna app and make payments without having to re-enter their payment details. The integration of the two payment services provides increased protection, given that the user account uses two-factor authentication.

To access these functions, customers must create a Klarna account. 95% of Sofort customers have already taken this step. The improved user-friendliness has led to a 5% increase in the conversion rate for consumers who use Sofortüberweisung integrated into Klarna.

David Sykes, Chief Commercial Officer, said, “We are integrating Sofortüberweisung into the Klarna environment to offer consumers and merchants the best of both worlds: the familiar Sofort payment process combined with the smoother, more secure payment experience and global reach of Klarna. The combined product is better for merchants and consumers and also a platform for Klarna to expand the functionality of Sofortüberweisung globally.”