For using Klarna, there is no need to create an account or a password.

"Customers can shop using only their email address and postcode. The customer then confirms the purchase before choosing a payment method. We have also introduced Pay After Delivery as a payment option, where the customer has 14 days to pay. This means the customer gets their goods and can make sure they're okay before paying," he said.

For this, the Klarna gives full guarantee to the customers as well as merchants.

For every purchase that's processed, the company also performs a swift background check on customer information based on the speed at which they type their email address and postcode.

"This ensures that Klarna can assume all the risk for fraud and credit loss, for both the customer and the merchant. This means that you always get paid, irrespective of the payment method," Nilsson said.

Klarna claims to be one of the fastest growing companies in Europe and having a 10 per cent market share of e-commerce in Northern Europe.

Besides Sweden and fellow Nordic countries Denmark, Finland and Norway, Klarna is active in Austria, Belgium, France, Germany, Hungary, Italy, the Netherlands, Poland, Spain, Switzerland, the UK, and the US.