Swedish online and mobile payments firm Klarna bought rival Sofort, in a move which it claimed will accelerate its European ambitions. The acquisition cost $150 million, according to AllthingsD.

The deal grows Klarna into one of the largest independent payment providers in Europe with a 10 per cent share of the continent’s $100 billion e-commerce market.

The combination is particularly good for Klarna in Germany where it will now enjoy a market share in excess of 50 per cent. Its own strength lies in the Nordic countries. In total, the partners will have a presence in 14 European countries.

Both companies will continue to offer their products side by side and operate on a standalone basis.

The transaction is subject to approval by the Swedish Financial Supervisory Authority.

Klarna reckons that almost 20 per cent of all e-commerce traffic comes from shoppers using their mobile device but points out the conversion rate is 60 per cent lower than via the desktop.

The Swedish firm offers a range of payments options — such as one-click pay and pay on delivery — to online retailers.