The new agreement sees Form3 providing Klarna with direct technical access to STEP2 and RT1 via its cloud-based, single API account-to-account platform. This will enable Klarna to process these payments directly rather than being dependent on third party banks. The addition of SEPA Instant as a payment flow will also create new payment use cases and ensure that Klarna stays ahead of the incoming mandate*.

Mike Walters, Form3’s CEO, says: “Providing SEPA connectivity to Klarna, one of the biggest, most technically-advanced fintechs in the world, further demonstrates Form3’s ability to process payments at scale, as this becomes critical for market leaders. This partnership also reinforces the ongoing trend in Europe for more organisations to connect directly to payment schemes to improve resilience and their end customers’ experience.”

Form3’s platform will process and manage all of Klarna’s inbound and outbound SEPA payments across these schemes and fully automate some of the manual payment processes typical to many banks, such as returns, recalls and refunds. This will drive efficiency gains and significant cost savings. In addition, Form3’s technology is designed to future-proof Klarna against regulatory changes such as the Digital Operational Resilience Act (DORA).

Felix Würtenberger, Head of Banking at Klarna, comments: “We are grateful for the opportunity to collaborate with Form3 and untilize their SEPA connectivity to enhance our customer offering in Europe. This partnership holds the potential to drive efficiency gains, cost savings, and ultimately improve the overall experience for our customers and merchants in Europe. We enthusiastically embark on this transformative journey with Form3, exploring the immense benefits it brings.”