Klarna buys German online payment company BillPay

Klarna, a Sweden-based payments provider, announced the acquisition of German online payment company BillPay, strengthening its position as one of the leading payment providers in Europe and accelerating its growth in the region.

BillPay, led by CEO Nelson Holzner, is one of the leading German online payment providers and was founded in 2009. It’s headquartered in Berlin, with over 140 employees, offering its services and products in Germany, Austria, Switzerland and the Netherlands.

The deal will give Klarna a market leading position in Germany, one of the largest e-commerce markets in the world, as well as in Austria and Switzerland.

In November 2016, Klarna bought another German company, Cookie, a peer-to-peer payment app provider. However, Cookie's acquisition was rather an opportunistic move from Klarna, as the German startup was already in bankruptcy, due to diasgreements between the co-founders over the lack of funding.

The BillPay acquisition is subject to approval by the Federal Financial Supervisory Authority in Germany.