Klarna Rolls Out as Default for Nexi Merchants
Hey Payments Fanatic!
Klarna and Nexi are strengthening their collaboration, bringing Klarna’s payment options to all Nexi merchants worldwide—both online and in-store. This move means small and medium-sized businesses will automatically have Klarna enabled at checkout, simplifying access to flexible payment solutions for millions of shoppers.
The rollout follows a successful pilot in the Nordics, where Nexi merchants reported higher conversion rates after integrating Klarna into their checkout process.
Nexi, a major player in European PayTech, operates across 25+ countries, serving banks, merchants, and consumers with seamless payment solutions. Klarna, known for its flexible payment options, will now be the default in Nexi’s checkout, helping merchants attract more shoppers and increase revenue.
The expansion will be particularly relevant in key markets such as Poland and Italy, where demand for alternative payment methods is rising.
If you’re curious about the latest happenings in Payments, keep reading!
Cheers,
PAYMENTS NEWS
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GOLDEN NUGGET
Welcome back to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐀𝐜𝐚𝐝𝐞𝐦𝐲 by Checkout.com — Episode 3👇
Topic #3: 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚 𝐏𝐫𝐢𝐦𝐚𝐫𝐲 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐍𝐮𝐦𝐛𝐞𝐫 (#PAN)
► A 𝐏𝐫𝐢𝐦𝐚𝐫𝐲 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐍𝐮𝐦𝐛𝐞𝐫 (PAN) is a unique identifier found on payment cards (credit, debit, and prepaid). It links the cardholder to their financial institution, enabling transactions and account management.
𝐒𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐨𝐟 𝐏𝐀𝐍:
PANs are standardized under ISO/IEC 7812, ensuring consistency across payment networks worldwide.
► 𝐌𝐚𝐣𝐨𝐫 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐢𝐞𝐫 (MII): The first digit identifies the card’s scheme, such as Visa, Mastercard, American Express, or Discover Financial Services.
► 𝐈𝐬𝐬𝐮𝐞𝐫 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐍𝐮𝐦𝐛𝐞𝐫 (IIN)/Bank Identification Number (BIN): The first eight digits identify the institution that issued the card (Chase, HSBC...). This helps the payment system route the transaction to the correct issuer.
► 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐢𝐞𝐫/𝐍𝐮𝐦𝐛𝐞𝐫: The remaining digits (typically digits 5 to 16 in a 16-digit PAN) uniquely link the card to the cardholder’s specific account.
► 𝐕𝐚𝐥𝐢𝐝𝐚𝐭𝐨𝐫 𝐃𝐢𝐠𝐢𝐭 (Check Digit): The last digit is calculated using the Luhn algorithm to verify the accuracy of the entire PAN, protecting against input errors or fraud.
► 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐜𝐞: PANs are highly sensitive data, often tokenized or encrypted to protect against unauthorized access. Tokenization replaces the PAN with a unique identifier, enhancing payment security.
► 𝐇𝐨𝐰 𝐝𝐨 𝐭𝐡𝐞𝐲 𝐟𝐚𝐜𝐢𝐥𝐢𝐭𝐚𝐭𝐞 𝐝𝐞𝐛𝐢𝐭 𝐚𝐧𝐝 𝐜𝐫𝐞𝐝𝐢𝐭 𝐜𝐚𝐫𝐝 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬?
1️⃣ 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐞𝐬 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 — In a card-present transaction, the PAN is collected through the card's EMV chip, magnetic stripe, or NFC technology during contactless payments.
2️⃣ 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 — The PAN is replaced with a token to protect sensitive data. This prevents exposure of the real PAN if security is compromised.
3️⃣ 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐒𝐮𝐛𝐦𝐢𝐬𝐬𝐢𝐨𝐧 — The token, transaction amount, and business details are sent to the acquiring bank.
4️⃣ 𝐈𝐬𝐬𝐮𝐞𝐫 𝐕𝐚𝐥𝐢𝐝𝐚𝐭𝐢𝐨𝐧 — The Issuer uses the PAN to locate the account, verify its validity, check for fraud, and confirm sufficient funds.
5️⃣ 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐨𝐧 — If approved, the issuing bank relays the approval through the payment network back to the acquiring bank, and finally to the point of sale, completing the transaction.
𝐓𝐡𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬:
✅ Security — PANs use the Luhn algorithm for fraud prevention and are often tokenized.
✅ Interoperability — Used for physical, online, and mobile transactions.
✅ Global Compatibility — Recognized and accepted by all—
Source: Checkout.com x Connecting the dots in payments...
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