COPENHAGEN, Denmark — Visa is investing in Swedish payments startup Klarna as part of a strategic partnership between the pair.
Visa announced on Tuesday at the Money2020 conference in Copenhagen that it has agreed to take an undisclosed stake in Klarna, which was valued at $US2.25 billion (£1.9 billion) in its last funding round.
Klarna, founded in 2005 in Stockholm, lets online shoppers “buy now and pay later,” effectively advancing people credit online with little more than an email address and a postcode.
The company works with 70,000 retailers and has been used by over 60 million consumers.
Jim McCarthy, executive vice president of innovation and strategic partnerships at Visa, says in a release announcing the deal: “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.”
Klarna’s CEO and cofounder Sebastian Siemiatkowski says in the release: “Partnering with Visa will give us the opportunity to strengthen our global presence and product portfolio by leveraging our combined assets. We are excited about the possibilities of what we can do together.”
No details of what the strategic partnership might look like are given in the release announcing the deal but Visa says it is “part of a global strategy to open up the Visa ecosystem.”
The investment comes at an interesting time for Klarna, which last week announced that it has been granted a banking licence. You can read our colleagues over at BI Nordic’s take on what this means for the company here.
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