[vesinisa]

Finland offers a state of the art digital authentication system. It's just that Klarna doesn't want to use it because it adds an auhtentication step to their checkout process. It's just easier for them to take the random internet user's word for who they are (!!).

I am not sure how this is even legal under the PSD2 in EU. It might not be. But Klarna does not seem to care, and I really hope someone will take them to court over this.

[tmk1108]

Is there any pressure in Finland to make this illegal? If your transaction didn't go through the digital authentication to verify identity, then it's worthless and the money can't be collected?

[vesinisa]

Yes, PSD2 (Payment Services Directive vol 2) should require strong customer authentication for online payments throughout EU. How Klarna is able to skirt this regulation is beyond me. Either they've found a loophole in the law or they are already in breach but the financial regulators are holding back from enforcing it.

https://en.wikipedia.org/wiki/Payment_Services_Directive#Rev...