Klarna rolls out search and compare tool

Monday 14 November 2022 14:37 CET | News

Klarna has rolled out a search and compare tool in the UK and Nordics as the fintech looks to diversify its revenue away from Buy Now, Pay Later (BNPL). 

It follows the product’s launch in the US in October 2022 and comes a year after the Swedish firm bought price comparison service PriceRunner for a reported USD 125 million, making it Klarna’s largest acquisition to date. The deal was finalised in the first quarter of 2022.

The new price comparison smarts allow customers to filter their searches by criteria such as size, colour, ratings, availability, shipping options, and more. On top of that, Klarna shows shoppers historical pricing data, which shows how the cost has fluctuated over time and whether they should buy now or wait a little longer to see if the price goes down.

The new offering intends to provide retailers with an alternative to Alphabet’s Google and Amazon, and supply Klarna with an additional revenue stream. Klarna’s affiliate marketing business generates 600 million leads a year for its retail partners, according to the company.

Klarna is handling about 2 million transactions a day, at roughly the same total value compared to a year ago, as increasingly downbeat consumers switch to cheaper goods.

Klarna’s developments

After receiving the USD 800 million financing in July 2022, Klarna has decided to add a new Loyalty Card feature in the Klarna App. This allows app users to store and access their physical loyalty cards as digital versions, removing the need to carry plastic equivalents while shopping in-store. In addition, Klarna launched its in-store payment feature ‘Digital Cards’, enabling UK consumers to pay for any purchase in three, interest-free instalments in the physical stores of participating retailers.

Klarna rolls out a search and compare tool in the UK and Nordics as the fintech looks to diversify its revenue away from Buy Now, Pay Later.

One month later, in August 2022, Klarna has announced the launching of a feature to allow UK customers to view their full online order history, regardless of whether they used Klarna to purchase their goods, all in a single app.

In October 2022, Klarna launched a Klarna Creator app for retailers and influencers to collaborate on brand campaigns. Klarna’s creator platform enables more than 500,000 vetted creators’ access to known brands and retailers, with retailers on the app having the option of direct messaging a creator they want to partner with and send them products for content. Additionally, it has a tracking feature for watching sales and commissions and the app is available for desktops, iOS devices, and Android devices.

UK’s BNPL regulation

In Europe, back in January 2022, the UK Treasury closed a consultation calling on industry experts to share 'views on the creation of a proportionate approach' to the regulation of BNPL. The British government introduced amendments to existing regulations in June 2022, including requirements for lenders to carry out affordability checks and amended financial promotion rules to ensure BNPL advertisements are 'fair, clear, and not misleading'. In the EU, while strongly articulated regulation directly aimed at what BNPL means for the consumer market is yet to be passed in Brussels, the European Council did revise its consumer credit directive in June 2022, aimed primarily at digitalisation and financial education for the public.

In UK, plans are now drawn up to include BNPL in the Consumer Credit Act 1974, with lenders required to seek FCA approval and offer consumer affordability checks. In addition, incentives to apply for BNPL loans will be subject to the Financial Promotion Regime to ensure they aren't misleading. Shoppers will be able to complain to the Financial Ombudsman if issues arise following a BNPL purchase.

To find more about Klarna, check their profile in our company database. 

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Keywords: product launch, BNPL, fintech, acquisition, data
Categories: Payments & Commerce
Companies: Klarna
Countries: United Kingdom
This article is part of category

Payments & Commerce


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