SOFORT

Sofort, also known as Sofort Überweisung, is an online payment method that enables real-time bank transfers at online checkout. It originated in Germany in 2005 as Sofort GmbH and was acquired by Klarna in 2014. Since then it has operated as part of Klarna's payments platform, with the branding often shown as Sofort or Sofort by Klarna.

At checkout, customers choose Sofort as the payment method, are redirected to the Sofort interface, select their bank and authenticate the payment using their online banking credentials. They authorize a transfer from their bank account to the merchant. Sofort notifies the merchant of the successful payment, typically within moments, allowing immediate order processing. The actual settlement to the merchant depends on the bank and settlement schedules.

Scope and availability: Sofort operates in Germany and other European markets, including Austria and Switzerland, and supports a large number of banks. It is primarily used for consumer purchases online and is one option among e-commerce payment methods. Availability varies by country and bank; not all banks or customers are supported.

Security and criticisms: The method relies on the consumer's online banking login and authorization to initiate the transfer. This has raised privacy concerns among critics who worry about credential sharing with third-party payment providers. In the European Union, Sofort is regulated as a payment service and must comply with PSD2 and anti-money-laundering rules; stronger customer authentication requirements have influenced its usage.