Swedish online payment startup Klarna yesterday announced it has acquired German online payment provider BillPay. While the companies did not disclose the financial terms of the agreement, several published reports said Klarna paid about $75 million for the Berlin-based company. After its acquisition three years ago of SOFORT, another popular German online payment method, Klarna is consolidating its reach in one of Europe’s biggest e-commerce markets.
“We are excited to be working with BillPay and their talented team in Berlin,” said Sebastian Siemiatkowski, co-founder and CEO of Klarna. “By combining our skills and expertise, and leveraging BillPay’s deep market knowledge, product features and consumer offering, we are confident that we can offer even more innovative payment services to our customers. Germany is one of the largest e-commerce markets in the world, and we are delighted to have strengthened our position here with this acquisition.”
Klarna has become one of Europe’s most valuable payments startups by enabling consumers to make online purchases using only an email address. While its strength lies in Europe, the company has established a U.S. office and made several deals there with online merchants and payment industry stalwarts.