Klarna has launched an interest-free shopping app, allowing users to pay in three instalments at any online retailer, without ever paying more than the original product price.
The buy now pay later outfit’s new Shopping feature allows its users to shop at any online retailer, regardless of whether they are partnered with Klarna or not. Klarna’s goal is to eliminate the need to use a credit card.
Sebastian Siemiatkowski, CEO of Klarna, said: “At Klarna, we believe that no-one should ever have to pay credit card fees or high interest rates and now, thanks to our new in-app shopping feature, they don’t have to.
“Shoppers now can interact with their favourite retailers without having to leave the Klarna app, to create a smooth, safe and frictionless shopping experience.”
The feature is currently live in other markets including the US, Australia and Sweden.
Offering personalised experiences
The app will also integrate monthly budgets and personal spending limit functionalities for users to set, helping customers to remain in control of their spending.
“Our one stop shop app is the future of shopping, it creates a truly personalised and bespoke service for every user and liberates consumers from ever paying more than the price of the product,” Siemiatkowski added.
Other features include personalised wish lists and curated content based on consumers’ interests and favourite stores. In addition, customers will receive price drop notifications, deals updates, as well as a list of retailers for users to decide where to buy a certain product, at the “best” price.
Amid the launch of the Shopping app, Klarna is undergoing its #WhyPayInterest advertising campaign. The campaign looks to highlight the difference between BNPL products and credit cards, with the aim of challenging the credit model.
The announcement comes as e-commerce spending has increased significantly since the pandemic began. Not to mention mobile wallets are becoming increasingly popular. According to Klarna, 72% of e-commerce will take place on a mobile device by the end of the year.
Furthermore, the move follows recent criticisms of the BNPL sector, which is currently unregulated. Critics of the sector say services, such as paying in instalments, encourage consumers to spend money they do not have and that those who fail to pay may see it reflected in their credit score.
Addressing these claims, Klarna launched an interactive campaign, in May, designed to enable customers to “discover the truth”.