What is Sofort?
Sofort is an online payment system developed in Germany and operated by Sofort GmbH, part of Klarna Group. It enables customers to make real-time transfers for online purchases directly from their bank accounts, using their regular online banking credentials. Available across much of Europe, Sofort supports payments in widely used currencies such as EUR and USD. Merchants receive instant payment confirmation, facilitating fast order processing. Customers do not need to create a separate Sofort account; the service serves as an intermediary between the buyer’s bank and the merchant, ensuring data encryption and regulatory compliance under EU standards for secure transactions.
How to use Sofort?
- Select Sofort as the payment method at checkout.
- Choose your country and bank from the provided list.
- Log in using your online banking details.
- Confirm payment using your bank’s authentication method.
- Receive instant confirmation; the merchant processes your order.
The pro's of using Sofort
- No need to create a separate Sofort account; uses existing bank credentials.
- Instant transaction confirmation to retailers, speeding up order processing.
- High security standards, including data encryption and EU regulatory compliance.
- Supports multiple European banks and works with EUR and USD.
- No storage of sensitive banking information by Sofort itself.
The con's of using Sofort
- Limited availability outside Europe; not supported worldwide.
- Requires sharing online banking credentials with a third-party intermediary.
- Refund processes can be slower compared to credit card payments.
- Not all banks or merchants accept Sofort as a payment option.
- Customers cannot reverse a payment once completed.