Klarna taps AI for human shopping experience in major autumn launch

• New AI-powered image-search allows users to snap, search and shop anything around them. 
• Riding on US success, shoppable videos go global. Discover and shop items instantly. 
• Barcode scanning brings the intelligence of Klarna's search and compare tool to physical stores. 
• Earn more with up to 10% cashback on purchases, shop with confidence with express refunds, purchase protection, sustainability search filters and more.

NEW YORK, Oct. 11, 2023 /PRNewswire/ -- Klarna, the AI-powered global payments network and shopping assistant has today unveiled a treasure-trove of 13 new products as part of its Spotlight Fall launch. Shopping lens, the flagship new feature, allows shoppers to take a picture of things and styles in their surroundings, instantly find out where to buy them and get the best deal in the Klarna app, using the search and compare tool. Klarna uses AI to translate the image into a search term, so consumers can turn whatever catches their eye into a shoppable item. 

This builds on the company's previous applications of AI to provide a discovery shopping feed in the Klarna app which recommends products based on personal interests - the feed is now enriched with the global roll-out of shoppable videos. In May this year, Klarna released research which found that 8 out of 10 shoppers look forward to having an AI shopping assistant. 

Klarna is also taking new tech to the high street with a feature that gives smart spenders instant access to detailed product information when in-store by scanning the item's barcode for customer reviews, to see whether there could be different colors or variants available online, or if they can find it for a cheaper price. Now all modes of inspiration - whether from the physical world or online - are plugged into Klarna's world-leading search and compare tool so consumers can get product information and price comparisons fast. 

"Klarna is the smarter choice, whether you're looking for shopping inspiration, personalized recommendations, or finding the best price," said Sebastian Siemiatkowski, CEO and Co-founder of Klarna, "Just like the internet gave everyone access to information, AI gives everyone access to intelligence, context and personalization. At Klarna we're using this to bridge the gap between the physical and digital world, connecting how humans get inspired with how computers search. I'm super proud that Klarna is leading this revolution in retail." 

Seen something you like? Snap it, search it and shop it

The world is now shoppable with the global launch of Klarna's in-app AI shopping lens, giving consumers the power to snap, search and shop almost anything around them. Ever found yourself mesmerized by someone's shoes, but clueless about where to find them? Simply snap a picture and let Klarna take care of the rest. 

With the in-app camera feature, the shopping lens can visually identify over 10 million items - be it a piece of clothing, home decor or electronics- and match these with over 50 million store offers in Klarna's search and compare tool, enabling curious shoppers to learn more, and compare prices, retailers and reviews. Shoppers will also be shown similar items that match the style of the pictured product, sparking even more inspiration for products they may have never known existed. The shopping lens is available to consumers in the US, UK, Germany, Sweden, Denmark and Norway.

Shoppable videos arrive in Europe, following success in the US

Blending the best of social, video, and ecommerce, shoppable video brings a stream of thumb-stopping content into the Klarna app. Shoppers can explore everything from unboxings and tutorials, to reviews and product drops from videos made by trusted brands and Klarna's global creator community. Any item they like can be shopped directly from the video. Shoppable videos have also evolved to allow creators to share content straight into the Klarna app, enabling them to reach Klarna's 27 million monthly app users. 

Thanks to the app's AI-powered recommendation engine, consumers can enjoy a truly personalized video experience, with content that aligns with their unique interests. As a result, in the US average viewer time has quickly increased by 60% and click-through rates by 25%, fueling further growth and customer acquisition for retailers. Alongside the US, shoppable videos are now available in the UK, Germany and Sweden.

In-store scanning provides instant access to detailed product information

With in-store shopping continuing to dominate, consumers want the searchability of the online shopping experience in brick and mortar stores. 

In response, Klarna has globally rolled out the ability for consumers to scan the barcodes of more than 10 million products across stores for instant access to detailed product information, such as customer reviews, whether there are other variants or colors available online, and price comparisons. Using the app's built in camera scanning feature, this empowers consumers to make smart decisions while on the high street – and also pay by scanning a QR code at integrated retailers. In-store scanning is available in the UK, US, Sweden, Germany, Denmark and Norway. 

Klarna is also announcing an additional 10 highly-anticipated product updates in response to consumer feedback, including: 

• A new cashback program

In the Klarna app, UK shoppers can now earn up to 10% of their purchase amount back with Klarna's new cashback program when they choose Pay Now, Pay in 3 or Pay Later at the checkout of retailers with active offers – including popular brands such as FARFETCH, River Island, The North Face and Hotels.com. This can then be applied for a discount on their next purchase when checking out with Klarna, either online or in the app.  

Rolling out in the UK first, with more markets in the pipeline, the cashback program is free to use and aims to provide consumers more value when they shop with Klarna. Moving away from the traditional points-based set-up, Klarna will give consumers more transparency and flexibility over how they earn and spend their rewards. For retailers, this allows them to connect with Klarna's most engaged and high-intent shoppers, enabling them to give back to their customers. In doing so, retailers can strengthen consumer loyalty, drive growth, and boost conversions. 

• Sign in with Klarna

Klarna has started rolling out a single sign-in solution, which allows consumers to use their Klarna logins for an even smoother sign-in and checkout experience at participating retailers, eliminating the need to create and remember multiple usernames and passwords, providing Klarna's large consumer network with the convenience of logging in or checking out with just one click. Available globally, retailers can integrate the service to give Klarna consumers a seamless shopping experience. 

• Purchase protection

Klarna will offer an enhanced level of protection to US consumers through Cover Genius' global distribution platform, XCover. With this feature, consumers can protect their purchases from breakdown, accidental damage and more. Managing policies and filing claims is made easy and convenient through the Klarna app.

• Express refunds

Provides faster refunds on eligible returns when purchases are made using Klarna's interest-free Pay in 3 in the UK or Klarna's interest-free Pay in 4 in the US. By providing a valid tracking number when initiating a return through the app, Klarna will pre-issue a refund so consumers can cut down waiting times and enjoy a smooth, hassle-free returns process. 

• Gift Card Store

In response to the high demand for gift cards during the holiday season, Klarna has partnered with Blackhawk Network (BHN), a leading global branded payments provider, to offer a Gift Card Store in the Klarna app in the US. This collaboration brings an extensive selection of gift card options from renowned retailers into the Klarna app, allowing consumers to purchase gift cards using Klarna. Currently available in the US, the Gift Card Store is planned to roll out in the UK early next year. 

• Sustainability search filters

New sustainability certification filters added to the app's intelligent search and compare tool further empower consumers with the tools to shop more consciously. These enable consumers to easily identify products which have third-party sustainability certifications from Global Organic Textile Standard (GOTS), People for Ethical Treatment of Animals (PETA), and Cradle to Cradle. The filters are available now in the US, UK, Sweden, Norway, and Denmark.

• Conscious shopping dashboard

Despite a growing interest in environmentally and ethically sustainable practices nearly 8 out of 10 consumers admit to struggling with identifying environmentally-friendly companies that align with their interests and values. To solve this information gap, Klarna has introduced a conscious shopping dashboard which serves as a centralized resource offering consumers access to a comprehensive array of sustainability-oriented products, features, and services provided by Klarna. The dashboard is available today in the US and will launch across additional markets in the coming months. 

These new features follow several other initiatives led by Klarna to provide consumers with the tools and insights they need to shop more consciously, including the ability to resell purchases through the Klarna app, and a Top Up donations feature, allowing US consumers to add a $1 donation to purchases made using Klarna's interest-free Pay in 4 service at integrated retail partners. 

To read about all of Klarna's latest products, click here. 

Klarna Spotlight is a recurring format where Klarna reveals its latest product innovations for consumers and retailers. For a full overview of Klarna's latest product updates for Spotlight Fall '23, click here. 

For additional information, please contact:

Shira Rimini
[email protected]
(614)-962-4605

About Klarna

Since 2005 Klarna has been on a mission to accelerate commerce with consumer needs at the heart of it. With over 150 million global active users and 2 million transactions per day, Klarna's fair, sustainable and AI-powered payment and shopping solutions are revolutionizing the way people shop and pay online, empowering consumers to shop smarter with greater confidence and convenience. More than 500,000 global retailers integrate Klarna's innovative technology and marketing solutions to drive growth and loyalty, including H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. For more information, visit Klarna.com.

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SOURCE Klarna Bank AB (publ)