By
Godfrey Benjamin
April 26th, 2024
The tool will use AI to provide users with information on goods around them through the Klarna app by simply pointing their phones at items.
Swedish fintech startup Klarna has launched an image recognition tool powered by artificial intelligence (AI). Using AI, Klarna wants to help people identify goods they would like to purchase.
The new AI feature on the Klarna app allows users to point their phones at products to find information about similar items via the Klarna app. Klarna launched the feature on Wednesday.
Speaking to CNBC, Klarna Chief Marketing Officer David Sandstrom said the company wants to help people find more uses for AI. Sandstrom said:
“We see AI as a huge opportunity for Klarna and the way we are approaching it is to provide everyone at Klarna with the tools and support to use AI in their day-to-day jobs. Our unique operating model gives us the agility to take advantage of emerging opportunities that deliver superior consumer benefits, such as AI, faster than sprawling traditional banks and credit card companies.”
Klarna trained its new AI tool using data from PriceRunner, a price comparison service. Last April, Klarna acquired PriceRunner for nearly $1 billion. At the time, Klarna said PriceRunner would bring several features to its app, including price comparisons, product reviews, and product discovery. The announcement also said the new features will help customers better control their finances by making informed decisions.
With the new feature, Klarna is now competing with Amazon, French shopping search engine Kelkoo, and Google Shopping, a comparison service from Alphabet.
Other Klarna Updates Including AI Personalized Profiles
This is not Klarna’s first attempt at using AI. In March, the company announced that it integrated the ChatGPT plugin to provide its users with shopping assistance. According to the announcement, users can seek product recommendations and shopping advice from Klarna. The app will also send users links to shop for products.
For a long time, Klarna has allowed users to use the “buy now, pay later” model, allowing people to pay for goods in installments. The company is also focusing more on designing features for shopping. Earlier this year, Klarna redesigned its app to include a discovery feed similar to TikTok. The feed recommends products to users using AI algorithms, which build personalized profiles of shoppers.
Klarna also introduced shoppable videos in Europe, a feature already available in the US. Via shoppable videos, users can view tutorials, reviews, unboxing videos, and clips from merchants and Klarna content creators. Klarna is already working with social media influencers who have quite the influence over purchase decisions.
In addition, the company launched Klarna Cash, a cashback rewards program. Klarna Cash allows users to earn up to 10% of their purchase when they checkout by selecting pay now, pay in three, or pay later.
In August, Klarna unfortunately announced that it did not record a profit in the first half of 2023. Although the company said it took several cost-cutting measures that helped reduce losses by about 67%, it still did not make a profit. Klarna’s net loss was 2.1 billion Swedish krona, a 67% reduction from the 6.5 billion krona recorded in the first half of 2022.