Klarna challenges Apple, Facebook, Google in digital verification
An artificial intelligence-based global payment provider and shopping assistant is challenging some big names in the automated login space.
Klarna is launching "Sign in with Klarna," a service designed to speed up consumer login to e-commerce sites and apps, in 23 countries including the U.S. On registration, the customer chooses what data they wish to share with the retailer and if they want to sign up for any membership or bonus programs the retailer offers.
Retailers gain access to personal data with consent from the consumer and can use it for memberships and to provide shoppers personal recommendations based on their purchase history. The verification of the consumer's data is entirely handled by Klarna, eliminating the need for retailers to pay third-party services to confirm a customer's identity via email or SMS.
According to Klarna, it is directly competing with tech giants such as Apple, Facebook and Google with the service, since the elimination of third-party cookies has made it harder for payment services to automatically fill in customer details to speed online checkout.
After initial pilot with a restaurant app and online marketplace in Sweden (where Klarna is headquartered), Sign in with Klarna is now available in the U.S., U.K., Ireland, Canada, Mexico, Australia, New Zealand, Sweden, Norway, Finland, Denmark, Germany, Austria, Belgium, Netherlands, France, Italy, Spain, Portugal, Greece, Poland, Czech Republic and Romania.
"With our new login service, we add another dimension to improving the customer journey for consumers and our offering toward retailers,” said Raji Behal, head of Western and Southern Europe at Klarna. "We give consumers control over their own data, making it easy for them to choose what to share with stores for a more personalized shopping experience. The product has enormous growth potential, and we believe that it will become as familiar a feature in global online retail as our payment solutions in the near future."
Klarna adds new features
In the past 12 months, Klarna has rolled out other new solutions and offerings, including:
Monthly subscription
Earlier in February 2024, Klarna introduced Klarna Plus, a subscription offering available to eligible U.S. consumers through the Klarna app for a monthly fee of $7.99. Klarna Plus provides access to a variety of features and offers.
AI-based shopping tools
In October 2023, Klarna unveiled a set of 13 AI-based shopping solutions. These included the ability to scan the barcodes of more than 10 million products across stores for instant access to product information and pay by scanning a QR code, enhanced in-app purchase protection, express refunds, and an in-app gift card store.
New sustainability tools
In June 2023, Klarna released a set of new and updated solutions designed to enable consumers to make more informed purchasing decisions and take sustainable actions.