Published
Online

Klarna launches voluntary gambling blocks for open-bank payments

Sofort, a payments solution subsidiary of Klarna, has developed the UK’s first open-banking voluntary gambling block, aiming to allow customers to control their betting habits through digital payments. 

Klarna payments gi web image

The technology, first developed by Monzo and TrueLayer for card-based payments, enables customers struggling with problem gambling to block payments to betting operators through their bank.  

While the block is in place, a customer cannot deposit money into a betting account and must request a 48-hour cooling-off period before it is lifted.  

So far, 400,000 Monzo customers have signed up to the gambling block, prompting the payments company to extend its software to open-bank, or cardless, payments.  

In doing so, Klarna, which has 146 million global users, is able to launch voluntary gambling blocks on Sofort’s platform, becoming the first UK payment provider to do so. 

Head of Klarna UK Alex Marsh commented: “We’re calling on banks and other open banking infrastructure providers to make this relatively small update, which could help protect hundreds of thousands of UK consumers.  

“Open banking has huge potential to increase competition and reduce costs and as adoption grows the industry must move quickly to make changes which can further improve the lives of UK consumers.” 

Sofort’s technology is used by 75,000 merchants across Europe, some of which are gambling operators.  

In connection with parent company Klarna, these merchants have access to approximately 15,000 banks and money lenders. 

Importantly for the gambling block technology to work, only immediate payments are allowed to betting sites, as opposed to buy now, pay later or other credit schemes.

Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Nederlandse Loterij
Relax Gaming
Hoiana Resort & Golf
Tipico
Follow Us

Facing Facts: Q1 2024 analysis from across the globe

Gambling Insider tracks the Q1 results of operators across t...

Taking Stock: A guide to sports betting operator and supplier prices

Gambling Insider tracks sports betting operator and supplier...

Tailor-made: The power of personalisation in the modern gaming industry

With insights from GR8 Tech, Greentube and the Oregon Lotter...

Sportradar and the Taiwan Sports Lottery: More offerings, greater efficiency

Danny Fok, VP of Strategic Projects at Sportradar, speaks al...