Sofort, Klarna’s direct deposit payment service, activates the UK Gambling Block

Klarna, a leading global retail banking, payments and shopping service that helps consumers save time and money, be informed and stay in control of their finances, today announced that it enables banks to extend voluntary gambling bans, to open bank-controlled payments operated by its subsidiary , SOFORT and helps protect hundreds of thousands of consumers in the UK.

British challenger bank Monzo was the first bank to introduce a gambling ban in 2018 after calls from customers who wanted help controlling their use of gambling sites. Since then, most UK banks have followed Monzo’s example. However, while gambling bans are effective for card payments, open banking-based payments are often not covered. Today, Klarna subsidiary SOFORT became the first provider to integrate the UK’s first gambling block with Open Banking, developed last year by Monzo and Truelayer, who made the update code public. This allows Monzo to extend its gambling ban to all Klarna-powered instant bank-to-bank payments for Monzo’s UK customers. Currently, 400,000 Monzo customers have activated the gambling ban.

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

With the update announced today by Klarna, banks connected to SOFORT can identify a payment request from a gambling or gaming company and, if a gambling ban is in place, block that payment to protect their customers. The update code is available to banks and open banking providers, and the fix is ​​quick, simple, and easy to build.

Alex Marsh, Head of Klarna UK comments: “We urge 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 act quickly to make changes that can continue to improve the lives of UK consumers. Sofort, Klarna’s direct deposit payment service, activates the UK Gambling Block

Fry Electronics Team

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