Financial services company Klarna has redesigned its app to introduce TikTok-like features, powered by Artificial Intelligence (AI) to enhance users’ experience.
The fintech company disclosed that its new design would help users find items they want by using more advanced AI recommendation algorithms, while merchants will be able to target customers more effectively.
Based on the shopping behaviors of Klarna shoppers and their favorite brands, the AI tool will create a personal profile for them. Thus, these shoppers will receive recommendations from Klarna’s 500,000 retailers including some of the top players like H&M, Nike, etc.
Speaking on the rollout of Klarna TikTok-Like AI-Powered Features, the company’s Chief marketing officer David Sandstrom stated that the inspiration was gotten from Chinese firms, as he noted that top shopping platforms in China have been leveraging the use of AI-driven shopping which has been effective.
In his words,
“In China, a couple of years ago, 90% of transactions started with a search. Nowadays, less than 50% of purchases start with a search because recommendations are so tailored to them. Our ambition is to basically offer people products and brands before they knew they wanted them”.
Sandstrom further stated that it would be naïve to compare Klarna’s features to TikTok’s recommendations. He said it would be a blatant lie that the company is close to the short-form video-sharing platform, however, Klarna has the prerequisites to do that.
Previously, the fintech company also launched the ability to integrate OpenAI’s Chatbot ChatGPT into its service along with a plugin that allows users to ask the chat or platform for shopping inspiration. Instead of relying on AI alone, Klarma looks to personalize its services further and recently launched the “Ask Klarna” feature, which allows shoppers to chat with or seek video advice from specialists.
Among the other features Klarna is rolling out is a resale option that lets people sell used clothing, electronics, and other items through a partner platform. Klarna joins a host of other tech firms that are incorporating AI-powered technologies into their products to enhance users’ experience.
Founded in 2005 in Stockholm, Sweden, to make it easier for people to shop online. With technology rapidly evolving, Klarna has continued to upgrade its services with its mission to make paying as simple, safe, and above all, smooth as possible.
Klarna is the leading global payments and shopping service, providing smarter and more flexible shopping and purchase experiences to 150 million active consumers across more than 500,000 merchants in 45 countries. The company offers direct payments, pay-after-delivery options, and installment plans in a smooth one-click purchase experience that lets consumers pay when and how they prefer to.
