Klarna enters cryptocurrency market through Safello partnership

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As cryptocurrencies continue to get mainstream acceptance globally, the services around them are also building up fast. In February 2021, buy now pay later (BNPL) giant Klarna made its first foray into cryptocurrencies by entering into a strategic partnership with Sweden-based crypto exchange Safello.

Notably, Safello is leveraging the open banking services of Klarna, thereby allowing its 180,000 customers to buy cryptocurrencies from their bank accounts. Currently, the global BNPL leader has access to more than 5,000 banks spread across 18 countries across Europe. Moreover, using a single API, the BNPL platform of Klarna complies with pan-EU banking regulations.  

Klarna and Safello partnership: Rise of open banking services in the EU  

The European Union Commission announced its Second Payment Services Directive (PSD2) in 2018. The new directive provided the much-needed fuel to the adoption and implementation of open banking services, which have been going through unexpected challenges and technical hurdles over the last few quarters.

Notably, the BNPL platform of Klarna has made the most of the new directives and has built one of the most scalable open-banking systems across Europe. In February 2021, Klarna also started offering bank accounts to consumers in Germany with the aim of becoming an all-in-one app for its users. According to Klarna, the company is looking to provide a seamless experience for shopping and banking to its customers.

PayNXT360 expects that the BNPL leader is looking to spread into other areas of finance as the scrutiny around the deferred payment space heats up. Moreover, Klarna and other BNPL financial technology startups have been under the microscope as calls to implement tighter regulation in the sector are gaining more traction.