Fintech firm Klarna overhauls its app with a TikTok-like discovery feed as A.I. hype swirls
On Tuesday, payment service provider Klarna introduced major updates to its app, which includes a discovery feed that resembles TikTok's feature and suggests products to users.
Klarna's Chief Marketing Officer, David Sandstrom, cites Chinese technology platforms' capability to pinpoint users with accurate product targeting as their influence for the new feature. Furthermore, among the latest updates is a resale option that enables users to sell pre-owned items, such as clothing and electronics, on a partner platform.
Klarna revealed an extensive update of its app, featuring a discovery feed that takes inspiration from TikTok, utilising AI technology to suggest products to users.
Additionally, content creators will have the option to personalise their storefronts and users can now sell their pre-owned items. The Swedish company aims to enhance the user experience by incorporating advanced algorithms to provide accurate product recommendations, at the same time improving merchants ability to target customers.
Klarna's AI will create a custom profile of shoppers based on their brand preferences and buying habits. Shoppers will then receive recommendations from Klarna's extensive network of 500,000 retailers, which includes popular brands such as Nike, H&M and Instacart. With more than 150 million users globally, Klarna is a widely used online checkout tool for shoppers who purchase from various retailers.
David Sandstrom, Chief Marketing Officer of Klarna, explained that the firm drew inspiration from Chinese tech platforms that have excelled in personalised algorithm-based shopping. Sandstrom mentioned that in China 90% of sales started with a search two years ago, but that number has fallen to less than 50% currently, with personal recommendations now being the norm.
AI Catalog's chief editor
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