Klarna has launched a new sub-brand and business unit to support its Open Banking platform.

The Buy Now, Pay Later (BNPL) firm said that the new brand, called ‘Klarna Kosma’, provides financial institutions, FinTechs, and merchants with connectivity that allows them to develop the “next generation” of apps and services by providing access to 15,000 banks across 24 countries with an API.

According to the Swedish FinTech, it has seen massive growth in its banking network – having doubled the number of connected banks in the past 12-months.

“With Kosma we are opening up the power of our proprietary Open Banking platform and technology to banks, merchants and FinTechs who share our dream of a world where consumers own their data and banks compete for customers by delivering value, not by locking in data,” says Yaron Shaer, CTO, Klarna.

Wilko Klaassen, vice president of Klarna Kosma, said that over the past year the demand for Open Banking services from financial institutions and FinTech start-ups has “reached a tipping point”.

“Which is why we have built a dedicated business unit which brings together engineering, product management, sales and marketing all together in the same team to focus on this $15bn, fast-growing market,” he said.

Earlier this month Klarna reported credit losses of $542 million (SEK 4.6 billion) for 2021.

The BNPL business attributed the losses to continued growth in its consumer base and expansion into new markets.

The business, which now serves 100 million active customers around the world, said that improved underwriting on mature market volume growth added $100 million to losses, while an increase in volume of new customers in growth markets added $300 million of losses.

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