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As if competition between US payment providers wasn't fierce enough, now, giants like PayPal and Stripe have to face a new European payment giant - Klarna, with its' seamless "email only" login process. It will be interesting to see if incumbents will be able to provide new and existing mobile purchasers with the same seamless experience Klarna has already achieved.
Because Klarna offers the ability for consumers to never enter any financial details until later in the transaction, the company says it can increase conversion rates by as much as 30%. This rate increases even more on mobile apps and websites, the company said. Since launching in 2005, Klarna has attracted 52 million users. It currently powers payments for 55,000 online retailers in Europe. Because the company issues credit to purchasers in some transactions, Klarna also has a banking license in Europe.
