European payments player launches in U.S., and its first retail partner is…

New York -- A Swedish-based payments company that allows mobile shoppers to pay for a purchase after has been delivered has entered the increasingly competitive U.S. payments market.



On Tuesday, Stockholm-based Klarna announced its official U.S. launch, with Overstock.com as its first major retail partner.



“Klarna removes the friction from the checkout process. During testing, Overstock's mobile customers responded with increased conversion rates, thanks to Klarna's sophisticated technology," said Overstock.com CEO Patrick M. Byrne.



Overstock.com will use Klarna checkout for mobile web purchases. Returning users that have shopped with Klarna can complete a purchase with just one tap. All that is required for a new mobile web user to complete the transaction is information like an email address and delivery address – a credit card number or additional registration information may not even be necessary to checkout.



If approved, the consumer has two weeks from the shipping date to pay, once the order is processed. This gives time for customers to receive the product before paying with their chosen payment method. According to Overstock’s Byrne, this will improve the customer experience and drive loyalty.



“We're incredibly excited to launch Klarna in the U.S. To do so together with a partner of such a massive scale as Overstock gives us a huge boost into the market,” said Brian Billingsley, CEO of Klarna North America. “U.S. consumers are looking for a simpler and safer way to buy and retailers are looking for better ways to engage their consumers and increase their checkout conversion. The early success we've had with Overstock show the massive opportunity to turn more browsers into buyers.”



According to Klarna, it is the only company worldwide to achieve the same conversion rates on mobile as retailers typically see on desktop, while assuming both fraud and chargeback risk for merchants.