The Nilson Report

Issue 1152 | Apr 2019


Companies featured in this issue include:

Latin America Market Shares of Purchase Volume

Latin America Market Shares of Purchase Transactions by Brand

Market Shares of Purchase Transactions in Latin America 

Latin America General Purpose Cards 2018

Second 50 Largest Debit Card Issuers in the U.S.—2018

Latin America General Purpose Cards 2018

Purchase transactions generated by global brand credit and debit cards issued in Latin America and the Caribbean region reached 22.83 billion in 2018, an increase of 12.8%.

1. Visa
13.10 billion transactions, +8.4%
2. Mastercard
9.08 billion transactions, +20.0%
3. American Express
0.56 billion transactions, +12.7%
4. Diners Club
0.09 billion transactions, +9.9%

Full access to the Latin America General Purpose Cards 2018 results is available when you subscribe to The Nilson Report.

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Klarna’s Open Banking Platform

Sweden-based Klarna received its banking license in 2017. The company provides loans to consumers and small businesses as well as debit and credit cards. Last year, Klarna processed more than $29.00 billion in online and in-store payments from 130,000 mostly Europe-based merchants. Included in that total was $11.18 billion from more than 100 million account-to-account direct transfers from consumer bank accounts to the bank accounts of 33,000 merchants. Those payments disintermediated Visa, Mastercard, and local-market-only debit cards.

The company gained the capacity to handle deposit account-based payments in the 2014 acquisition of Sofort. Since then, Klarna has invested in increasing the number of back-end integrations Sofort maintains with banks in Europe. It now has more than 4,300. 

Through a single API, Klarna has started to offer these back-end connections to other businesses in Europe, including banks and payment service providers (PSPs) if they have been licensed by their country’s national banking authority. 

Klarna says its recently launched Open Banking Platform provides access to 99% of online banking consumers in 14 European markets.

The Klarna Open Banking Platform conforms to the European Union’s Payment Services Directive (PSD2). The directive requires a combination of account information services (AIS), which provide consolidated information on payment accounts, and payment initiation services (PIS), which enable the account-to-account direct bank transfers. 

Klarna will provide its Open Banking customers with tools and technical services to handle compliance and user experience (UX) aspects of credentials management. Most companies are expected to build consumer-facing ecommerce products on the front end and pay Klarna a per-transaction fee to make settlement on the back end. Some companies will use Klarna for the full front-end UX. 

Klarna has already integrated with its first Open Banking customers. They will soon be announced. 

Those customers will benefit from Sofort’s experience in account-to-account payments. Because financial institutions have different technology platforms, repeated usage improves speed and accuracy of the back-end integrations needed for successful account-to-account payments. Usage also helps mitigate problems with fraud and insufficient funds on deposit. 

George Parks Davie is Open Banking Platform Manager at Sofort in Frankfurt, Germany,,

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