Klarna scraps open banking brand 18 months later

Klarna, the Buy Now Pay Later (BNPL) giant, has made the decision to discontinue its banking brand, Klarna Kosma, after less than 18 months of operation. The open banking platform, which was launched in April 2022 as a “major strategic move,” will now be absorbed back into Klarna’s corporate brand, as reported by Tech.eu.

Despite the decision to scrap the separate brand, the company has assured that there will be no job cuts as a result of the move. Wilko Klassen, the Vice President of Klarna Kosma, will continue to lead the division within the Swedish company.

A spokesperson from Klarna explained the rationale behind the integration: “Since we launched in April 2022, our open banking business has experienced tremendous growth. Due to this impressive expansion, we have decided to align the brand even closer with Klarna, and as a result, the business unit will no longer operate under a separate brand but under the Klarna corporate brand.”

Klarna Kosma served as the home for Klarna’s open banking platform, which was launched amidst a significant peak in the open banking sector in April 2022. However, last month, the decision was made to dissolve the platform in order to consolidate the company’s resources under a unified banner.

The move comes in the wake of Klarna’s recent strong performance in the first quarter and a new partnership with Airbnb. These developments are part of the company’s efforts to rebound from a challenging year in 2022, during which it reported a $1 billion annual loss.

By integrating Klarna Kosma back into its core brand, Klarna aims to create better synergy among its offerings and capitalise on the impressive growth of its open banking business. The consolidation will allow the company to present a unified front to its customers and drive even greater success in the BNPL and open banking sectors.