Stockholm-based payment facilitator Klarna is again expanding in Europe, this time with the purchase of German e-commerce payment company BillPay.
BillPay enables customers to pay by invoice, direct debit, or in installments through its PayLater product. The company says that it guarantees payments to merchants, assuming the risk of accepting these payment types.
BillPay claims that it serves more than 12 million customers and 5,000 online merchants. In addition to Germany, it operates in the Netherlands, Switzerland and Austria.
Klarna also focuses on the buy now and pay later approach. It provides customers with options to finance their payments into installments or pay after delivery within 14 days with no interest, as well as enabling them to pay at the time of purchase with a credit card.
“We are excited to be working with BillPay and their talented team in Berlin. 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,” Sebastian Siemiatkowski, co-founder and CEO of Klarna, said in a press release. “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.”
In its announcement, Klarna said that the acquisition strengthens its position as a leading European payments provider. Last fall, the company expanded in the U.K. through partnerships with WorldPay, BigCommerce, and others.
According to a report in TechCrunch, the acquisition makes Germany Klarna’s largest market, bringing its total number of customers in Germany to 27 million.