Klarna Powers Payments for FINN’s Car Subscriptions
Hey Payments Fanatic!
The car subscription market is picking up speed, expected to hit €8.5 billion by 2025 with 33% annual growth. Klarna is now entering the space, teaming up with Germany’s FINN to make car subscriptions easier. FINN’s customers can use Klarna to manage their monthly payments and settle final invoices, making the process of driving without owning even smoother.
Since launching in 2021, FINN has been pushing all-inclusive car subscriptions, including insurance, maintenance, and roadside assistance into one fee. With over €100 million in equity raised and a second ABS financing round of up to €1 billion, the startup is scaling fast.
Klarna, already powering payments for Uber, Flink, and Instacart, is expanding further into the mobility sector—now supporting subscription-based startups, where flexible payments mean fewer cancellations and a more seamless experience for customers.
“Bringing our flexible and intuitive payment solutions into the fast-growing car subscription market empowers drivers to manage their payments effortlessly,” said Nico Schenck, Klarna’s Head of Germany.
Also, I’ve got to give a huge shoutout to Arthur Bedel for being nominated as MPE Influencer of the Year 2025! I’ve always believed in lifting others up in this space, and seeing Arthur get the recognition he deserves is a great moment.
He’s been putting in the work, sharing valuable insights, and helping shape the conversation around payments. If his content has ever made you think, sparked an idea, or helped you navigate the industry, go show him some support and cast your vote here!
If you’re interested in reading a bit about what’s been happening in Payments, keep scrolling!
Cheers,
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PAYMENTS NEWS
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"The complexity of global payment systems requires a smarter, more adaptive approach," said Matias Rodriguez, General Manager and Global VP of Sales at DEUNA. "With Athia, we are enabling merchants to optimize their payment strategies in real-time, ensuring transactions are routed efficiently, fraud is proactively mitigated, and revenue potential is maximized."
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GOLDEN NUGGET
Welcome back to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐀𝐜𝐚𝐝𝐞𝐦𝐲 by Checkout.com — Episode 2👇
Topic #2: 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐏𝐈?
► A 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐏𝐈 is a technology that enables businesses to process digital transactions by seamlessly integrating with payment processors, gateways, and banks. It allows merchants to accept and manage online payments securely and efficiently by transmitting payment data between a website or app and financial institutions
𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐚 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐏𝐈 𝐰𝐨𝐫𝐤?
► When a customer makes a purchase, the Payment API securely transmits their payment details, enabling the following process:
1️⃣ Customer initiates a payment by clicking "Buy Now" and entering their payment details.
2️⃣ Payment API encrypts & transmits the data from the merchant’s website to a payment gateway.
3️⃣ Payment gateway forwards the request to the card issuer for verification.
4️⃣ Issuer authenticates the transaction, checking for sufficient funds and security validation.
5️⃣ Transaction is approved or declined, and the response is sent back via the payment gateway to the merchant.
6️⃣ Merchant notifies the customer of the successful (or failed) payment.
𝐖𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐚 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐏𝐈 𝐝𝐨?
► A robust Payment API offers more than just transaction processing. It helps businesses with:
✔ 𝐌𝐮𝐥𝐭𝐢𝐩𝐥𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐌𝐞𝐭𝐡𝐨𝐝𝐬 — Accepting cards, e-wallets, & bank transfers
✔ 𝐅𝐫𝐚𝐮𝐝 𝐏𝐫𝐞𝐯𝐞𝐧𝐭𝐢𝐨𝐧 — Implementing security checks and authentication
✔ 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 — Encrypting card details for secure storage
✔ 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐩𝐭𝐢𝐨𝐧 & 𝐑𝐞𝐜𝐮𝐫𝐫𝐢𝐧𝐠 𝐁𝐢𝐥𝐥𝐢𝐧𝐠 — Managing automated payments
✔ 𝐃𝐢𝐬𝐩𝐮𝐭𝐞 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 — Handling chargebacks and payment conflicts
✔ 𝐑𝐞𝐚𝐥-𝐓𝐢𝐦𝐞 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 — Providing transaction reports and analytics
𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐚 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐏𝐈 𝐝𝐢𝐟𝐟𝐞𝐫 𝐟𝐫𝐨𝐦 𝐚 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐆𝐚𝐭𝐞𝐰𝐚𝐲?
While both are essential in digital payments, they serve different functions:
► 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐏𝐈 — Acts as the technology bridge that allows businesses to integrate payments into their platform, offering flexibility and customization.
► 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐆𝐚𝐭𝐞𝐰𝐚𝐲 — A service that securely transmits transaction data between the merchant’s website and financial institutions, often offering plug-and-play solutions.
𝐓𝐡𝐞 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐮𝐬𝐢𝐧𝐠 𝐚 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐏𝐈:
✔ More control over the payment experience
✔ Seamless integration with business platforms
✔ Enhanced security & compliance
✔ Scalable for global transactions
✔ Supports multiple currencies & payment methods
Stay tuned for the next episode of 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐀𝐜𝐚𝐝𝐞𝐦𝐲 📚by Checkout.com.
I highly recommend following my partner Arthur Bedel 💳 ♻️ for more great content like this one👌
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