Exclusive: Klarna updates app strategy to take advantage of COVID-19 online shopping boom

By Daniel Lanyon on Monday 7 September 2020

Digital Banking

The app will, Klarna says, now cover the entire shopping journey, from "inspiration and discovery" through to the transaction - all in one place.

Exclusive: Klarna updates app strategy to take advantage of COVID-19 online shopping boom
Image source: Sebastian Siemiatkowsk

Buy now pay later app Klarna is moving from simple payments into the broader shopping market following a major update to its app. The Swedish firm, the most valuable privately held fintech in Europe, wants users to come to its app to browse and shop rather than just to make deferred payments.

The firm says the new Klarna app has been designed to changing consumer demand as they shift from shopping in-store to online, a move that has accelerated in recent months.  

Klarna’s 9.5 million UK users now have access to wish lists, price drop notifications, deals and curated content also in a bid to draw its customers to its app.

The app will cover the entire shopping process, from "inspiration and discovery" through to the transaction. Content is personalised based upon consumers’ interests favourite retailers and past shopping behaviour.  

Sebastian Siemiatkowski, CEO and co-founder of Klarna says in the past few months, Klarna has seen a shift in shopping behaviour with millions more fully embracing digital shopping for the first time as physical shops closed.  

"Despite the shifting retail landscape, consumers are still looking for inspiration, convenience and value and it’s become obvious that shopping online now goes far beyond just a transaction. The new Klarna app elevates the entire shopping experience, from start to finish by bringing together all the best aspects of shopping in one place, giving Klarna users a unique and personalised experience at their fingertips,“ he said.

Klarna's latest number show a seven-fold increase in losses in the first half of 2020 compared to the same period in 2019.

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.