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Klarna taps AI for “human shopping experience” with new products

By Danielle Wightman-Stone


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Klarna’s in-app AI shopping lens Credits: Klarna

Klarna, the AI-powered global payments network and shopping assistant, is rolling out 13 new products this autumn, including a new AI-powered image search, which allows users to snap, search and shop.

The new products were unveiled as part of the company’s ‘Spotlight Fall’ launch and feature new products that build on its “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 rollout of shoppable videos.”

The incentive was driven by research released by Klarna in May this year, which revealed that 8 out of 10 shoppers “look forward to having an AI shopping assistant,” the company said.

Sebastian Siemiatkowski, chief executive and co-founder of Klarna, said in a statement: “Klarna is the smarter choice, whether you’re looking for shopping inspiration, personalised recommendations, or finding the best price.

“Just like the internet gave everyone access to information, AI gives everyone access to intelligence, context and personalisation. 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.”

Klarna to launch new AI-powered products to help consumers shop smarter

A key launch as part of its “smarter shopping” approach, includes an AI-powered image search that lets shoppers “snap, search and shop anything around them,” utilising Klarna’s in-app AI shopping lens.

Using the in-app camera feature the shopping lens can visually identify over 10 million items, explains Klarna, including clothing, home decor and electronics, and can then match these with more than 50 million store offers in its search and compare tool, “enabling curious shoppers to learn more, and compare prices, retailers and reviews”.

The AI shopping lens will be available to consumers in the UK, US, Germany, Sweden, Denmark and Norway and will also show them similar items that match the style of the pictured product.

Klarna rolls out shoppable videos arrive in Europe

Klarna also added that it is bringing shoppable videos to the UK, Germany and Sweden, following the success in the US, which blends social, video, and e-commerce. 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.

Using the app’s AI-powered recommendation engine, consumers can also enjoy a personalised video experience with content that aligns with their unique interests. As a result, in the US, average viewer time has quickly increased by 60 percent and click-through rates by 25 percent.

Klarna is also taking its new tech to the high street with a barcode scanning feature that brings the intelligence of Klarna’s search and compare tool to physical stores. Consumers in the UK, US, Sweden, Germany, Denmark and Norway will be able 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 colours available online, and price comparisons. In addition, shoppers will be able to pay by scanning a QR code at integrated retailers.

Klarna to launch cash-back programme in the UK first

Another launch is a new 10 percent cash-back programme within the Klarna app. Rolling out in the UK first, with Klarna adding “more markets in the pipeline,” the cash-back initiative moves away from the traditional points-based set-up to give consumers “more transparency and flexibility over how they earn and spend their rewards”.

Using the Klarna app, UK shoppers will be able to receive 10 percent of their purchase amount back when they choose ‘Pay Now,’ ‘Pay in 3’ or ‘Pay Later’ at the checkout of retailers with active offers, including Farfetch, River Island, and The North Face. This can then be applied for a discount on their next purchase when checking out with Klarna, either online or in the app.

Other updates in the ‘Spotlight Fall’ launch include the rollout of a single sign-in solution for a smoother sign-in and checkout experience, purchase protection, express refunds, and a gift card store, as well as sustainability search features and a conscious shopping dashboard.