Form3 to support Klarna’s European payments

EU· 3min November 21, 2023

Form3 to provide SEPA Instant, Credit Transfer and Direct Debit connectivity for Klarna’s 150m active customers across more than 500,000 merchants.

Form3, the cloud-native account-to-account platform, is delighted to announce it will be providing Klarna, the AI-powered payments network and shopping assistant, with SEPA connectivity to bolster its customer offering in Europe as part of its wider international growth strategy.

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 utilize 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.”

* The European Commission (EC) published a proposal in October with the aim to require banks and other payment service providers (PSPs) to offer 24/7 instant Euro payment services without charging customers an additional fee.

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About Klarna

Since 2005 Klarna has been on a mission to accelerate commerce with consumer needs at the heart of it. With over 150 million global active users and 2 million transactions per day, Klarna’s fair, sustainable and AI-powered payment and shopping solutions are revolutionizing the way people shop and pay online and in-store, empowering consumers to shop smarter with greater confidence and convenience. More than 500,000 global retailers integrate Klarna’s innovative technology and marketing solutions to drive growth and loyalty, including H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. For more information, visit

About Form3

Form3 is the account-to-account platform. Founded In 2016, Form3 set out to revolutionise the world of payment processing and disrupt the traditional payment infrastructure model, with an always on, cloud-native, Payments-as-a-Service platform. Today, Form3 is trusted by some of the UK’s and Europe’s and the US’s biggest tier one banks and global financial institutions to handle their critical payments architecture. Form3 has been awarded Accel Euroscape 2023 Top 100 Company, Tech of the Future for Banks & Financial Institutions 2023 by the Paytech Awards, Payments Tech of the Year 2023 at the UK Fintech Awards, and Engineering Team of the Year 2023 at the Europe Fintech Awards.