Kustom.co Launches as Independent from Klarna Checkout

Hey Payment Fanatic!

Kustom.co, formerly known as Klarna Checkout, embarks on its next chapter as an independent company. With a renewed focus on being a merchant-first checkout solution, Kustom is setting out to help e-commerce businesses boost conversion rates and offer a highly customized checkout experience tailored to their needs.

With partnerships like Stripe powering its infrastructure, Kustom is expanding payment options, delivering faster and smoother integrations, and giving merchants the flexibility to personalize everything from payment methods to currencies and shipping options. The company is also investing in enhanced merchant support, ensuring that businesses have access to the help they need, exactly when they need it.

According to a LinkedIn post by Rasmus Fahlander, Kustom's Chief Product Officer, while Klarna will continue to be a key partner, Kustom's newfound independence unlocks faster innovation and enables a broader, more diverse range of offerings.

Congratulations to the entire Kustom team on this exciting new chapter!

For more insights and updates on the global payments industry, keep reading below👇. I’ll see you back here on Monday with even more news!

Cheers,

Marcel

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INSIGHTS

How do consumers pay in Latin America?

Here's a breakdown:

PAYMENTS NEWS

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🇺🇸 Visa has introduced the Visa Commercial Solutions Hub, designed to streamline business payment management for financial institutions and businesses, providing a modern, personalized user experience focused on efficiency and ease of implementation.

🇺🇸 PayPal completes its first business transaction using stablecoin as a way to demonstrate how digital currencies can be used to improve often-clunky commercial transactions. PayPal paid an invoice to Ernst & Young LLP on Sept. 23 using PYUSD relying on an SAP SE platform to complete the transaction. More here

🇬🇪 UniPAY partners with TransferGo. This collaboration will introduce IBAN payout services from the UK and EU to Georgia, facilitating efficient international transfers directly to bank accounts, especially benefiting the Georgian diaspora in sending money back home.

🇩🇰 Danske Bank and Klarna are the first to offer recurring payments via Swish. Earlier in September, they announced the rollout of a highly anticipated service for recurring and automatic payments for Swish users. Now, the service is going live with the first two banks, Danske Bank and Klarna, offering the service to their business customers.

🇺🇸 PayPal CEO on crypto: We're just scratching the surface. Alex Chriss says that becoming an exchange isn’t in the long-term plan for the company. "For us, the real transformation is 'where am I in the world where I can create the right payment to any merchant.'"

🇦🇪 du Pay partners with Emirates NBD to elevate Digital Payment Solutions in the UAE. The partnership aims to simplify fund transfers for du Pay customers in the UAE by providing a unique virtual IBAN, offering enhanced convenience and security for sending and receiving funds directly through the app.

GOLDEN NUGGET

What do PayPal, Square, Mollie and other Payments companies do exactly?

Let’s dive into the 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗘𝗰𝗼𝘀𝘆𝘀𝘁𝗲𝗺:

The diagram below (made by ByteByteGo) shows a bird eyes views of the payments ecosystem👇

Steps 0️⃣-1️⃣: The cardholder opens an account in the issuing bank and gets the debit/credit card.

The merchant registers with ISO (Independent Sales Organization) or MSP (Member Service Provider) for in-store sales.

ISO/MSP partners with payment processors to open merchant accounts.

Steps 2️⃣-5️⃣: 𝗧𝗵𝗲 𝗮𝗰𝗾𝘂𝗶𝗿𝗶𝗻𝗴 𝗽𝗿𝗼𝗰𝗲𝘀𝘀.

The payment gateway accepts the purchase transaction and collects payment information.

It is then sent to a payment processor, which uses customer information to collect payments.

The acquiring processor sends the transaction to the card network. It also owns and operates the merchant’s account during settlement, which doesn’t happen in real-time.

Steps 6️⃣-8️⃣: 𝗧𝗵𝗲 𝗶𝘀𝘀𝘂𝗶𝗻𝗴 𝗽𝗿𝗼𝗰𝗲𝘀𝘀.

The issuing processor talks to the card network on the issuing bank’s behalf. It validates and operates the customer’s account.

I highly recommend reading the deep dive article for more interesting info on this topic.

Source: ByteByteGo

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