Klarna partners with Germany’s Sparkasse Finanzgruppe to introduce VRPs

Source: Klarna

Klarna, the global digital bank and flexible payments provider, is partnering with the German Sparkassen-Finanzgruppe to launch a new way to pay: Variable Recurring Payments (VRP). This innovation enables all Klarna users with current accounts at participating savings banks to make recurring payments directly from their bank accounts — quickly, easily, transparently, and securely. No rigid direct debits, no unexpected fees, and no long processing times.

More flexibility when paying

With VRPs, customers can easily set up monthly payment budgets from which recurring payments — such as for streaming services, memberships, or regular online purchases — are automatically executed.

Authorization is granted once via the personal Sparkasse of the customer in their S-pushTAN app, after which all payments within the approved budget are processed automatically — no need to re-enter a TAN.

Customers always remain in full control: all active payment budgets are visible in their online banking and can be deactivated at any time. All executed payments appear instantly on their account statement.

Nicole Defren, head of Northern and Central Europe at Klarna, said: “VRP sets a new benchmark for digital payments for millions of consumers. With Variable Recurring Payments, Klarna offers a modern, account-based alternative to traditional direct debits — secure, fast, convenient, and fully transparent.

“Together with the Sparkassen Finanzgruppe, Klarna continues to expand an innovative and future-ready payments network.”

A major step forward for Open Banking

The launch of VRP also marks an important milestone for Open Banking in Europe, with Germany taking a leading role in payment innovation. Variable Recurring Payments are a key part of Klarna’s mission to build the payments network of the future.

Across Europe, the volume of Open Banking payments has grown by more than 200%, driven by strong demand in Germany, where usage increased by 60% in 2024 alone.

Benefits for customers

• Enhanced security: Improved protection against fraud through tokenized authorization of transfers.
• Full control: Monthly payment budgets can be customized and managed at any time.
• Real-time transparency: All executed payments appear immediately in the account — with no delay.
• Seamless experience: Setting up a payment budget is quick, secure, and effortless — for maximum convenience in everyday life.

Further reading: Industry leaders debate commercials, VRP, and the roadmap to 2026 at OBExpo UK & Europe