Some big moves in the payments platform space: Ant Financial Group, the owner of China’s Alipay payment platform, has announced it’s taking a minority stake in Swedish payments platform Klarna. Klarna has a strong European presence and a flagship product that lets shoppers buy now and pay later in interest-free installments (typically 14 or 30 days after the purchase).
The pair have not disclosed terms of the deal but Reuters reported the stake amounts to less than 1% and was made up of existing and new shares. It also cites its source telling it the stake was done at a “slight uptick” to Klarna’s $460 million funding round last August, which valued the company at $5.5BN.
Prior to this news, Klarna and Alipay had already been collaborating via Alibaba’s global ecommerce marketplace, AliExpress — which offers Klarna’s “Pay later” option in multiple markets.
Now the pair touted their deepening partnership as set to bring more “innovative and convenient” financial services to consumers worldwide.