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Visa Inc. is investing in Klarna, a Sweden-based payment processor that offers retail credit options for merchants, the card brand announced Tuesday.
The intent, Visa says, is to develop a “future strategic partnership,” which appears to focus on Europe, though Klarna also operates in North America. Visa says the deal is part of its strategy to make its capabilities more available in support of new partners. Visa did not disclose the amount of the investment.
“Visa is committed to partnering with a new generation of partners and payment providers to bring secure, online commerce to many more consumers in Europe,” said Jim McCarthy, Visa executive vice president of innovation and strategic partnerships, in a press release. “We look forward to working more closely with Klarna to accomplish this.”
The opportunity for retail credit payments is large, Jim Lofgren, Klarna’s U.S. boss, told Digital Transactions News in May. In addition to paying immediately with a card, or up to 14 days after delivery, consumers also can make installment payments. Klarna serves 70,000 global merchants.
In other Visa news, the card brand’s Visa Checkout service is part of the Payscout VR Commerce app announced by payments provider Payscout Inc. on Tuesday.
The app, which works with Google Cardboard, a virtual-reality app for Android smart phones that uses a cardboard viewer to attach to phones, enables consumers to shop and purchase physical goods within a virtual-reality experience. The inclusion of Visa Checkout means consumers can make a purchase within the app without removing the virtual reality headset, Payscout says.
In a demo, users launch the Payscout VR Commerce app and enter their payment credentials. The consumer then selects Body Language Sportswear, a Los Angeles-based online retailer, and enters the virtual store Body Language has set up. The shopper can interact with product pages by rotating items and enlarging items. Upon checkout, the app confirms the purchase and incorporates the payment credentials and shipping details from the phone’s digital wallet. After the payment is processed by the Payscout VR Commerce app, the merchant’s fulfillment site appears with all of the order details.
“We’ve seen many prototypes and simulations of VR shopping, but this is the first time anyone can experience real commerce in VR,” said Cleveland Brown, Payscout chief executive, in a press release.
Sherman Oaks, Calif.-based Payscout says an iOS version of its app is coming, as is support for additional virtual-reality platforms.
