Klarna, the AI-powered global payments network and shopping assistant, has revealed a period of strong growth across Europe in recent months – as other Buy Now, Pay Later (BNPL) firms have been forced to withdraw due to economic pressures.
Klarna saw its total value of sales rise 14 per cent YoY in Q2 2023 – outpacing the rest of the e-commerce sector overall, which grew by just one per cent in the same period.
Since 2020, the BNPL provider has launched in 11 European markets, most recently in Romania and the Czech Republic. Klarna also boasts 100 million European consumers and has partnered with over 470,000 merchants, with recent new multi-market deals including TIER, MandMDirect and Deichmann.
Across Europe, Klarna now has over 100 million European customers and over 470,000 merchant partners. Klarna also boasts 18 million customers, as well as over 31,000 merchants in the UK alone.
In the UK, the company has driven growth by expanding into new sectors – with partnerships announced with iconic luxury brand Liberty and Paulton’s Park, home of Peppa Pig World.
As smaller BNPL providers leave the market due to challenging economic conditions, Klarna remains committed to investing, continuing to grow and foster relationships with new customers, and building trust and loyalty that sees them using Klarna again and again.
Sebastian Siemiatkowski, CEO of Klarna, said: “It’s fantastic to see this sustained, phenomenal growth across Europe, with GMV up 14 per cent in the region. While other, smaller players dial back their commitment or leave the region altogether, we’re doubling down, further strengthening our position in Europe, as well as the US.”
A recent Klarna survey revealed that 74 per cent of European customers use Klarna at least once a month, with ‘trust’ emerging as the biggest reason why they choose to shop with Klarna, followed by ease of payment.
Enhanced AI-powered customer options
Klarna has now rolled out its instant debit option, Pay Now, across all European markets, accounting for around a third of all transactions. This means consumers now have the choice to pay in full immediately or pay over time – all without interest – when selecting Klarna at a retailer’s checkout. Retailers, in turn, benefit from offering consumers a seamless checkout experience and giving their customers more choices according to their needs.
Klarna is a driving force behind the shift from search-based to recommendation-based shopping. The Klarna app is now powered by an AI-product recommendation engine to help consumers find and shop for items most relevant to them.
The feed updates in real-time with a range of products and deals, and becomes increasingly personalised as it learns more about the user’s preferences. Klarna’s recent collaboration with OpenAI also looks to bring curated product recommendations to users who ask ChatGPT for shopping advice and inspiration via its plugin.
Klarna also offers additional growth tools for retailers, including its creator platform, a matchmaker for creators and retailers to scale and optimise campaigns. A number of influencers have already signed up as Klarna Creators; with a selection of brands already reportedly experiencing triple-digit revenue growth following campaigns.