Kivra provides a digital mailbox to more than 3.7 million users in Sweden. Through the Kivra app, users can receive and process all their bills and important mail in one place, making life simpler while also sparing the environment.
With over 2.5 million invoices to be settled every month, Kivra was looking for the most cost-effective and friction-free way to enable these payments, and now they’re partnering with Tink to make it easier to settle invoices with just a few clicks.
Kivra’s app already provides the possibility to pay invoices with a solution built on Autogiro (a Swedish direct debit), where customers would pay Kivra and they’d then send it to the recipient. But Autogiro isn’t the ideal setup for a number of reasons - it can take several days to complete, and Kivra is required to process the collection and distribution of funds from payers to the right recipients. This means friction for the users, and a big operational burden for Kivra.
Settling the tab, without the headache
Tink’s payment solution, building on PSD2, brings direct bank payments into existing digital customer journeys. How does it work? Kivra’s customers simply click to pay directly on the digital invoice, select the bank account they want to pay from and approve the payment - all within the Kivra app.
And for Kivra this means that their users make their payments directly to the merchant or service provider, without Kivra needing to touch the money in between. Less hassle for both Kivra and their users, with more invoices getting paid on time.
‘It is an important step in our ambition to improve the user experience to develop a payment solution through the opportunities made possible by PSD2. Using Tink as a provider for our new payment service became a natural choice as we explored the market. We look forward to starting this journey with Tink and making Kivra an even better service for our 3.7 million users’ said Anna Bäck, CEO at Kivra.
Reducing the complexity in payments
The Tink platform is connected to all of the major European banks, giving customers the opportunity to unlock the many benefits that open banking can bring.
Tink VP of Payments, Tomas Prochazka adds, ‘With Payment initiation our goal is a simple, future-proof, plug-and-play solution that enables our customers to keep the payment experience in their world and unlock new digital sales and onboarding opportunities. You could create these connections to all the banks and different markets yourself, but the complexity and years of effort you’d have to put in is too much. Instead, we reduce this complexity by offering one API that supports and maintains all banks and markets - regardless of how each bank handles payments and transactions.’