Klarna brings gambling block to open payments
Monzo's public gambling block code is being used by Klarna
Anyone who shops online will know of the payment option provider, Klarna, as the service provides a smooth and safe way to pay for anything online. In a recent announcement, the payment provider is enabling banks to extend voluntary gambling blocks to open banking-driven payment.
This is done through its subsidiary Sofort using the public code developed by TrueLayer and Monzo. This news was just months after PayPal added gambling blocking software at the start of 2022.
In 2018, Monzo was the first bank to introduce a gambling block following the demand of players who wanted help controlling their use of gambling sites in hopes of promoting responsible gambling.
What is open banking?
Open banking enables consumers to share their bank and credit card transaction data securely with third parties who provide them with services and applications allowing them to make payments through the service.
Gambling blocks are effective for payments made by card, but open banking payments are not often covered. UK banks such as Sainsbury's Bank, Starling Bank and Tesco Bank are just a few that use open banking.
What will the gambling block allow?
Sofort, the subsidiary company behind Klarna, provides immediate, bank-to-bank payment services to a range of merchants including online casinos.
This new gambling block will allow Monzo to extend its gambling block to all Klarna powered bank-to-bank payments and it's estimated that 400,000 customers have activated the block.
All banks connected to Sofort will be able to identify a payment request from a gambling company and block that payment if there is a gambling block in place.
“Protect hundreds of thousands of UK consumers," says Klarna
Alex Marsh, head of Klarna UK comments, “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."