On Tuesday, Visa unveiled a strategic partnership with Swedish online payments provider Klarna, but the companies did not disclose the size of stake. The announcement comes on the heels of Klarna being granted a banking license by the Swedish financial regulator.
Klarna launched in 2005 as a simple way to pay at e-commerce sites, authenticating purchases only with a postal code or email address. In recent months, the company has focused on using its technology to extend instant credit to online shoppers. Visa, which was an early investor in other disruptive payment providers like Square and Stripe, said the investment in Klarna is part of a strategy to open its ecosystem to partners that can redefine the purchasing experience and extend its reach—specifically, in this case, to Europeans.
“Klarna has demonstrated an expertise in consumer credit and online purchasing and together, we share a vision for how today’s online and mobile commerce experiences can be as simple as they are in the real world,” said Jim McCarthy, executive vice president of innovation and strategic partnerships at Visa Inc. “Visa is committed to partnering with a new generation of partners and payment providers to bring secure, online commerce to many more consumers in Europe.”