Klarna, Sparkasse Partner to Introduce Variable Recurring Payments (VRP)

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.

Klarna, the global digital bank and flexible payments provider, has announced a partnership with the German Sparkassen-Finanzgruppe to launch Variable Recurring Payments (VRP), a new way to pay.

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.

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.

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Authorisation 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.

“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,” said Nicole Defren, Head of Northern and Central Europe at Klarna.

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

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The launch of VRP also marks a milestone for Open Banking in Europe, with Germany taking a major 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 tokenised authorisation of transfers.
• Full control: Monthly payment budgets can be customised 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.

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