Swedish payments company Klarna is preparing to drop $100 million for U.S. operations, which will be based in Columbus, Ohio.
“We want to set a new standard for how people shop with their mobile devices. Columbus is at the heart of U.S. e-commerce activity and is the perfect launch pad for our expansion,” said Brian Billingsley, chief executive officer of Klarna North America, according to a report in Payment Eye.
The Klarna approach involves a more sophisticated risk assessment mechanism, that relies heavily on credit store and purchase behavior. This allows some consumers—those with the highest scores—to merely provide an E-mail address and Zip Code to complete a purchase. "Klarna then takes full responsibility for the payment, pays the retailer immediately and collects the amount due from the consumer within 14 days," the story said.