What Is Sofort (Klarna)?

Bank Transfer

Sofort is a real-time bank transfer payment method widely used in Germany, Austria, and Switzerland. Now owned by Klarna, Sofort allows consumers to pay online by logging into their bank account during checkout and authorizing a direct bank transfer. The merchant receives instant payment confirmation, though actual fund settlement occurs within 1-2 business days.

How It Works

1. **Selection**: The customer chooses Sofort (or "Pay with Klarna" / "Klarna Pay Now") at the merchant's checkout. 2. **Bank selection**: The customer is redirected to the Sofort payment page and selects their bank from the list of supported institutions. 3. **Login**: The customer enters their online banking credentials (login ID and PIN) on the Sofort-hosted page. 4. **Review and confirm**: Sofort pre-fills the bank transfer details (amount, recipient account, payment reference). The customer reviews and confirms the transfer using their bank's TAN or authentication method. 5. **Instant confirmation**: Sofort sends a real-time confirmation to the merchant that the payment has been successfully initiated, allowing the merchant to fulfill the order immediately. 6. **Settlement**: The underlying SEPA bank transfer settles within 1-2 business days, with funds arriving in the merchant's account.

Key Details

Processing Time

Instant confirmation, T+2 settlement

Typical Fees

€0.25 + 0.9%

Limits

Bank-dependent (typically up to €50,000)

Supported Countries

5 countries

Real-timeRecurringCross-border

Pros & Cons

Pros

Instant payment confirmation for merchants — even though the bank transfer settles in T+2, the merchant gets a real-time guarantee that the transfer has been initiated, enabling immediate order fulfillment.
Extremely high reach in Germany and Austria — connected to over 3,000 banks, covering virtually every online banking user in the DACH region, making it essential for merchants targeting German-speaking consumers.
No chargebacks — since the payment is a direct bank transfer authorized by the customer, there is no chargeback mechanism, reducing fraud risk for merchants compared to credit card payments.
Strong consumer trust in the DACH region — German and Austrian consumers have used Sofort for over 15 years and recognize it as a safe, reliable payment method, which supports healthy conversion rates.

Cons

Actual fund settlement takes 1-2 business days despite instant confirmation — merchants must manage the cash flow gap between confirming the order and receiving the funds in their bank account.
The redirect flow requires customers to enter their bank credentials on a third-party page, which can create friction and some consumers remain uncomfortable sharing banking login details outside their bank's own interface.
Does not support recurring payments — each transaction requires the customer to manually log in and authorize the transfer, making it unsuitable for subscriptions or repeat billing.
Limited geographic reach — primarily useful only for the DACH region (Germany, Austria, Switzerland) plus Belgium and the Netherlands. Merchants with a broader European audience need additional payment methods.

Use Cases

German e-commerce — online shops targeting German consumers integrate Sofort as a primary payment method alongside PayPal, invoice, and credit cards to maximize checkout conversion.
High-value purchases — furniture, electronics, and travel bookings in the DACH market benefit from Sofort's flat-plus-percentage fee structure, which is more economical than card fees for larger orders.
Merchant risk reduction — businesses selling digital goods, event tickets, or other high-fraud-risk products use Sofort to eliminate chargeback exposure.
Cross-border DACH sales — merchants based outside Germany/Austria/Switzerland can accept Sofort payments from DACH customers through their PSP without needing a local bank account.
Marketplace payments — German marketplaces and platform businesses offer Sofort to match the payment preferences of their domestic user base.

Sofort (officially "Sofort by Klarna" or "Klarna Pay Now") is one of the most established online bank transfer methods in the German-speaking market. Founded in 2005 by the German company Payment Network AG under the brand "Sofortüberweisung" (literally "instant transfer"), it was acquired by Klarna in 2014 and has since been integrated into Klarna's broader payment ecosystem. Despite the acquisition, Sofort continues to operate as a distinct payment method and remains one of the most trusted ways to pay online in Germany, Austria, and Switzerland.

## How Sofort Works

Sofort functions as a payment initiation service (PIS) under the EU's PSD2 regulation. When a customer selects Sofort at checkout, they are redirected to the Sofort payment page where they select their bank from a list of supported institutions. The customer then enters their online banking credentials (login and PIN/TAN) directly on the Sofort interface. Sofort uses these credentials to initiate a pre-filled bank transfer on the customer's behalf — the customer simply reviews the pre-filled transfer details (amount, recipient, reference) and confirms it with a TAN (transaction authentication number) from their bank.

Critically, Sofort does not store the customer's banking credentials. It acts as a pass-through intermediary that initiates the transfer in real time and then confirms to the merchant that the payment has been successfully initiated. The merchant receives an instant confirmation that the bank transfer has been authorized, allowing them to ship goods or grant access immediately. However, the actual settlement of funds follows the normal bank transfer timeline — typically T+2 business days — because the underlying mechanism is a standard SEPA credit transfer.

## Market Coverage

Sofort is available in Germany, Austria, Switzerland, Belgium, and the Netherlands, but its primary market is the DACH region (Germany, Austria, Switzerland). In Germany specifically, Sofort has been one of the top online payment methods for over a decade, competing directly with PayPal, credit cards, and invoice-based payment methods. German consumers have historically been skeptical of credit cards and prefer bank-based payment methods, which has driven Sofort's strong adoption.

Sofort supports over 3,000 banks across its operating countries. In Germany alone, virtually every bank — from major institutions like Deutsche Bank, Commerzbank, and Sparkasse to smaller cooperative banks (Volksbanken and Raiffeisenbanken) — is connected to the Sofort network. This gives Sofort near-universal reach among German online banking users.

## Fees

Merchant fees for Sofort typically consist of a fixed component plus a percentage: around €0.25 plus 0.9% of the transaction value. This pricing model means that for very small transactions, Sofort can be relatively expensive, but for medium-sized purchases (the typical e-commerce sweet spot of €30-€200), the total cost is competitive with or cheaper than credit card processing. Exact pricing varies by PSP — Stripe, Adyen, and Mollie each set their own Sofort pricing as part of their payment method bundles.

For consumers, Sofort is free. No fees are charged to the buyer for using Sofort, and the bank transfer initiated by Sofort is a standard SEPA transfer that falls within the customer's normal banking fee structure (typically free for domestic transfers).

## Klarna Integration and Future

Since Klarna's acquisition, Sofort has been gradually rebranded and integrated into Klarna's product suite. In some markets, Sofort now appears as "Klarna Pay Now" or "Pay with Klarna" at checkout, though the underlying bank transfer mechanism remains the same. Klarna has been using Sofort's bank connection infrastructure as the foundation for its own open banking initiatives.

There has been ongoing discussion about whether Sofort will eventually be fully absorbed into Klarna's broader platform or continue as a standalone brand. For now, it remains available as a distinct payment method through all major PSPs, and merchants can integrate it independently of Klarna's buy-now-pay-later products.

## Regulatory Context

Under PSD2, Sofort is licensed as an Account Information Service Provider (AISP) and Payment Initiation Service Provider (PISP). This gives it a clear legal framework to operate across the EU. The regulation also requires banks to provide access to licensed PISPs like Sofort, which has strengthened Sofort's position and eliminated some of the legal challenges it faced in its early years when some banks attempted to block its access.

Supported by These Providers

Stripe

4.6

Transaction fee: 2.9% + $0.30

Adyen

4.5

Transaction fee: Interchange++ (€0.11 processing + scheme fee + interchange)

Mollie

4.2

Transaction fee: €0.25 + scheme rate (1.8% EU / 2.8% non-EU cards)

Klarna

3.9

Transaction fee: Variable (typically 3.29% + $0.30 for BNPL)

Related Resources

Frequently Asked Questions

Is Sofort the same as Klarna?

Sofort is owned by Klarna but is a different product. Sofort is an instant bank transfer method — the customer pays immediately from their bank account. Klarna is best known for buy-now-pay-later (BNPL) products where the customer pays later. Klarna acquired Sofort in 2014 and has been gradually integrating it under the Klarna brand (sometimes shown as "Klarna Pay Now"), but the underlying mechanism remains a direct bank transfer, distinct from Klarna's BNPL offerings.

Is Sofort safe? Do I have to share my banking credentials?

Sofort is licensed as a Payment Initiation Service Provider under the EU's PSD2 regulation and is regulated by the German Federal Financial Supervisory Authority (BaFin). When you enter your banking credentials on the Sofort page, they are used only to initiate the specific transfer and are not stored. The process is encrypted end-to-end. That said, some consumers prefer not to enter banking credentials on any third-party site, which is a valid concern — in such cases, alternative bank transfer methods or the customer's own banking app may be preferred.

How long does it take for a Sofort payment to arrive?

The merchant receives an instant confirmation that the bank transfer has been initiated, which is sufficient to fulfill the order immediately. The actual funds settle into the merchant's bank account within 1-2 business days, following the standard SEPA Credit Transfer timeline. The confirmation is considered reliable because the transfer is authorized directly through the customer's bank during the payment flow.

What does Sofort cost for merchants?

Sofort fees typically consist of a fixed fee of around €0.25 plus approximately 0.9% of the transaction value. Exact pricing depends on the payment service provider (Stripe, Adyen, Mollie, etc.) and the merchant's negotiated rates. For consumers, Sofort is free to use — no additional charges are applied beyond any standard fees their bank charges for outgoing transfers (which are typically zero for domestic SEPA transfers).

Can I use Sofort for recurring payments or subscriptions?

No. Sofort requires the customer to actively log in to their bank account and authorize each individual transaction. It does not support storing payment credentials, mandates, or automatic recurring charges. For recurring billing of German or Austrian customers, merchants should use SEPA Direct Debit, card-on-file payments, or Klarna's subscription billing products instead.