Swedish fintech startup Klarna, which is famous for its online financial services like “buy now, pay later” (BNPL) and AI-powered shopping assistant, has unveiled a trove of new features as part of its “Spotlight Fall Launch”.
One flagship feature in particular stood out from the rest. Dubbed the “Shopping Lens”, this AI-powered image recognition tool allows shoppers to point their smartphone camera at things in their surroundings, like a piece of clothing, an electronic gadget, or an item of furniture, and instantly find results for similar items directly on the Klarna app.
The tool is similar to Google Lens, which provides users with suggestions and detailed information on the item they point their cameras at. The company says its AI lens tool is trained on data from the price comparison platform PriceRunner which was acquired by Klarna for close to $1 billion.
PriceRunner compares prices of over 1.5 million products and helps consumers find better price deals on a wide range of product categories. The service is a direct competitor to the likes of e-commerce giant Amazon, and Google’s price comparison platform Google Shopping.
Klarna Shopping Lens Recognizes Items From Images
The Klarna AI will search for the item in the image by translating it into text, thus helping customers find where they can buy any shoppable item that catches their eye. The feature builds on the fintech’s previous applications of generative AI tools on the Klarna app like the “Discovery Shopping Feed” which recommends products based on the shopper’s personal interests and fills their landing page with videos related to their in-app search.
Klarna is adding another feature to the machine-learning algorithm that will give shoppers more details of an item by simply scanning its barcode when in-store and the AI will display customer reviews of the product. This also helps consumers see if they can find alternatives to the particular item, or if they can get it for a cheaper price from another retailer.
The Shopping Lens can identify over 10 million items and match them with over 50 million store offers in Klarna’s search and compare tool, enabling shoppers to learn more about products and compare prices, retailers, and customer reviews.
The AI feature is currently available to Klarna users in the US, UK, Germany, Sweden, Denmark, and Norway.
Klarna also rolled out a few other features to its UK and European customers that were already available in the U.S.
Shoppable Video Showcases Tik-Tok Style Content On The Klarna App
Shoppable video allows shoppers to explore various product-related content on the Klarna app like unboxing, tutorials, reviews, and launches through videos made by partner merchants and the tech firm’s global creator community. Customers can purchase the item directly from the video. The feature also allows social media influencers and creators to share product reviews and ads straight to the Klarna app, giving them access to the company’s 27 million monthly users.
The company’s AI-powered recommendation engine also helps personalize users’ in-app experience by showing content that aligns with their personal preferences and unique interests.
Since its founding, Klarna has offered users a zero-interest credit model that has become widely popular among younger, and less affluent consumers who lack the credit history to successfully apply for a credit card. The e-commerce platform also offers users the ability to pay for purchased items over installments using the “buy now, pay later” model.
Additionally, Klarna is launching its new cashback program in the UK, allowing shoppers to earn up to 10% in cash-back when choosing one of the “Pay Now”, “Pay in 3”, or
“Pay Later” options during checkout at partner retailers. Customers can also apply their rewards for a discount on their next purchase when checking out with Klarna, either on the app or through the website.
Sign-in With Klarna Offers A Seamless Shopping Experience At Partner Stores
“Sign in with Klarna” is a single sign-in solution that can be integrated by retailers on their apps and websites to streamline customer sign-in and checkout experiences. Shoppers no longer need to create and remember multiple usernames and passwords, and instead use their Klarna ID to conveniently access online retail stores.
Klarna has partnered with Blackhawk Network (BHM), a leading global branded payments solutions provider, to deploy a Gift Card Store on the Klarna app in the US. Customers can choose gift card options from a wide range of retailers on the app that will give them healthy discounts and cash-back offers on purchases during the holiday season.
The app’s intelligent search and compare tool has also integrated a new sustainability certification filter to help consumers shop more consciously. Shoppers can easily identify products that have third-party sustainability certifications from Global Organic Textile Standard (GOTS), People for Ethical Treatment of Animals (PETA), and Cradle to Cradle.
Klarna’s artificial intelligence-powered solutions were made possible by integrating the Microsoft-backed OpenAI’s open-source application programming interface (API) onto its app and website. Another fact is that OpenAI has released DALL-E 3, which brings the AI image generator to ChatGPT.