AI-powered buy now, pay later provider Klarna has rolled out a new login service that it expects will become “as familiar a feature in global online retail as our payment solutions”.
The new consent-based data sharing feature, called ‘Sign in with Klarna’, allows consumers to speed up the online purchase process by using Klarna to automatically fill in their details and, in turn, enables merchants to personalise their offers to shoppers.
Where Apple and Google’s elimination of third-party cookies has made it harder for payment services to automatically fill in customer details at online checkout, ‘Sign in with Klarna’ solves for this, according to Klarna.
The service works by allowing customers, on registration, to choose which data they wish to share with the merchant, and sign-up to any membership or bonus programmes offered by the merchant.
Those same merchants gain access to individuals’ personal data with consent from the consumer, and can use it for memberships and to give personal recommendations based on shoppers’ purchase history.
Klarna handles the verification of the consumer’s data, providing another cost saving to merchants.
Raji Behal, head of Western and Southern Europe at Klarna, said the new login service adds “another dimension” to improving the customer journey for consumers and Klarna’s offering for merchants.
“We give consumers control over their own data, making it easy for them to choose what to share with stores for a more personalised shopping experience,” Behal added.
“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.”
‘Sign in with Klarna’ is now available in 23 countries globally, having launched initially in Sweden with restaurant app Maitres and marketplace Tradera, as part of a trial.
The service has become the second most popular login method on Tradera, accounting for 20% of total social logins after a few months.
“The vast majority of Swedes already use Klarna, and the new login service thus significantly simplifies registration for the majority of our customers,” said Stefan Öberg, chief executive officer of Tradera.
The US, UK, Canada, Mexico, Australia, New Zealand, Norway, Finland and France are among the 23 countries where ‘Sign in with Klarna’ is now available.
Klarna received authorisation from the Financial Conduct Authority (FCA) to offer regulated credit services and payments in the UK, in November last year, ahead of the expiration of the FCA’s Temporary Permissions Regime on 31 December 2023.
Klarna Card, its ‘One-time’ card, ‘Instore’ card and Open Banking-based payment services are all regulated.
