Klarna has partnered with Sparkassen-Finanzgruppe, Germany’s largest financial services network of public sector banks, to launch variable recurring payments (VRPs).

The move will mean that all Klarna users with current accounts at participating savings banks will be able to make recurring payments directly from their bank accounts.

VRPs are an Open Banking-powered payment method that lets customers connect authorised payments providers to their bank account to make payments on their behalf in line with agreed limits, providing an alternative to direct debits.

Through the new partnerships, customers will be able to set up monthly payment budgets from which recurring payments – such as for streaming services, memberships, or regular online purchases – are automatically executed.

Approval is granted once via the personal savings bank of the customer in their S-pushTAN app, a platform for authorising online banking transactions, after which all payments within the approved budget are processed automatically.

All active payment budgets are visible in their online banking and can be deactivated at any time.

“VRP sets a new benchmark for digital payments for millions of consumers," said Nicole Defren, head of northern and central Europe at Klarna. "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.”

According to the FinTech, across Europe, the volume of Open Banking has grown by more than 200 per cent, with strong demand in Germany, where usage increased by 60 per cent in 2024.

Last month, the Financial Conduct Authority’s (FCA) head of department, open banking & open finance has said that account-to-account (A2A) and Open Banking payments stand on the cusp of becoming an ubiquitous option for consumers, merchants and businesses in the UK.

Speaking at the Open Banking Expo in London, Andrew Self told the audience that the move towards Open Banking becoming a day-to-day payment option for Brits forms part of the next phase of work that his team currently has a “laser focus" on.

The department head said that in 2026 he expects to see variable recurring payments (VRPs) become more prevalent across e-commerce, with the payment method potentially even available in stores.

Self's comments come after the regulator and Payment Systems Regulator (PSR), which since has been folded into the FCA, announced plans earlier this year to establish an independent company to advance UK VRPs.

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