Visa and Klarna announced on Tuesday that the card network plans to invest in the Stockholm-based company.

The move comes at a time when Klarna – which has 60 million consumer and 70,000 retailer customers – has said it is looking to expand its product offerings and challenge the financial services status quo on a larger scale.

The companies plan to create what they called a “future strategic partnership” regarding online and mobile commerce in Europe. The deal is part of Visa’s strategy to develop partnerships with a variety of companies globally that are helping to “redefine and enhance” commerce for merchants and consumers, they said.

Klarna, which is also a payment facilitator, just recently received a license that allows it to operate as a bank within the European Union.

“Now that Klarna is licensed as a bank, we also have the ability to be a member of a card network, and Visa is the world’s largest,” Jim Lofgren, U.S. general manager for Klarna, told “The relationship provides an efficient way for us to scale globally and in the U.S., and to diversify product development and offerings and give flexibility to our significant customer base.”

The company is known for allowing consumers to finance their online purchases and pay in installments or interest free within 14 days after the purchase.

“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,” Jim McCarthy, executive vice president, innovation and strategic partnerships, for Visa, said in a press release.

“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. We look forward to working more closely with Klarna to accomplish this,” he continued.

The companies cited Forrester data forecasting that online sales will grow at 12% per year over the next five years in Western Europe.

The terms of the agreement were not disclosed.