Swedish e-commerce payments company Klarna has agreed to purchase German online payment provider BillPay for an undisclosed amount.

Founded in 2009, BillPay allows online shops to offer invoice, direct debit and flexible pay later instalment option. The company offers services in Germany, Austria, Switzerland and the Netherlands.

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

Klarna co-founder and CEO Sebastian Siemiatkowski said: “We are excited to be working with BillPay and their talented team in Berlin. By combining our skills and expertise, and leveraging BillPay’s deep market knowledge, product features and consumer offering, we are confident that we can offer even more innovative payment services to our customers.

“Germany is one of the largest e-commerce markets in the world, and we are delighted to have strengthened our position here with this acquisition.”

BillPay CEO Nelson Holzner said: “We are thrilled to join the Klarna team. Together we will have a market leading position in Germany, Austria and Switzerland, and will be able to offer our merchants and users highly attractive payment options in more international markets in an ever increasing cross-border e-commerce environment.”