Installment payment provider Klarna will share technology with e-commerce technology company Digital River as part of Klarnas stategy to extend services to the U.S. and other markets.
Under the partnership, the Minneapolis-based Digital River has added the Stockholm-based Klarna's invoice tool to its portfolio of online payment options offered in various European countries including Austria, Denmark, Finland, Germany, Norway, Sweden and the Netherlands. Klarna Invoice enables consumers to defer purchase payments by using a billing invoice or flexible payment installments that ultimately help increase consumer buying power.
Another agreement allows Klarna to use the Digital River World Payments solution, a consumer credit card and online bank transfer payments solution that in 2013 helped process more than $30 billion in online transactions, according to a press release.
These agreements represent "multiple mutually beneficial opportunities, Souheil Badran, Digital River World Payments senior vice president and general manager said in an Oct. 6 press release. Thanks to Klarna "we can offer our clients even more alternatives designed to cater to buyer preferences and drive online sales conversions," he said.
Klarna gains "a single integration and point of contact that can support our continued geographic expansion" that allows for faster time to market as we continue to grow our business, said Max Emilson, director of Global Partner Solutions at Klarna.
Klarna Group, which currently serves 25 million consumers and 45,000 merchants, is simultaneously expanding to new European markets and in the U.S. as soon as 2015. Klarna contends its installment payment model can reduce cart abandonment, and attract retailers.