Earlier today, online payment service provider Klarna announced that it has received $155 million of financing from DST Global and General Atlantic. Klarna will use the fresh capital to expand into new regions, hire more employees and fuel its growth in existing markets.

Klarna provides a payment service that enables online merchants to offer their customers the option to pay by invoice or installments after the delivery of their goods. Klarna completely assumes the credit and fraud risk for any transaction, ensuring that the merchant will always receive the money. In order to pay with Klarna, consumers only need to provide basic information such as name, address and date of birth. Based on a identification and credit assessment, purchases are approved in real time and consumers receive instant feedback.

The company was founded in 2005 in Sweden by three students to provide a safer and simpler payment solution for e-commerce. Today, Klarna handles more than $2.5 billion worth of transactions annually for its 14.000 connected merchants. The new investors add substantial support for Klarna’s future growth by providing sector specific expertise. DST Global is an investment group focusing on Internet companies, with investments such as Facebook, Twitter, Spotify, 360Buy and Alibaba Group. General Atlantic is an investor in the financial services sector and in Internet technology companies such as Alibaba Group, Mercado Libre, Facebook, and Dice. Sebastian Siemiatkowski, one of the founders and CEO of Klarna commented: “The added support of these world class investors to our current partners will enable us to spread Klarna to more countries and more people, and is an essential step in reaching our ‘zero friction vision’ for buying online.”

Check out the video below to see how Klarna works: