蘑菇AV

Klarna hailed AI鈥檚 potential, but it needs to consider how the tech can bring benefits that competitors can鈥檛 replicate.

Sezzle and Klarna made progress toward long-term profitability in 2023鈥攚e look at how they鈥檙e using subscriptions to help make that happen

The travel booking site partnered with Stripe and Klarna to offer BNPL and smoother bank transfers.

Is AI replacing jobs? Klarna says yes: The company plans to cut 1,800 more jobs after a year of aggressive cost-cutting.

For example, Affirm expanded its tie-up with Shopify in the UK and Canada, and Klarna partnered with Worldpay, JPMorgan Payments, and Adobe Commerce. Both firms have also partnered with Apple Pay and Google Pay. But individual partnerships are still important if BNPL players want to reach larger merchants like Stitch Fix.

Klarna posted a massive $71.96 billion in GMV for the first nine months of 2024 thanks to its expansive presence in Europe. Our take: Sezzle still has a long way to go to catch up to its competitors. And the company recognizes this: 鈥淭o say that we are in early innings [of the company鈥檚 growth] is an understatement,鈥� Sezzle CEO Charlie Youakim said.

In the past year, Apple Pay partnered with Affirm and Klarna. Google Wallet also recently added Afterpay and Klarna, building on its tie-ups with Affirm and Zip. Delinquencies will remain low. Structural repayment differences will keep BNPL default rates lower than those of credit cards. Most BNPL providers require automatic repayments, helping keep rates low.

Klarna had the highest score of any fintech, coming in fourth place with a score of 638. Affirm got the lowest score, at 607. This is the second year in a row that Amex, Chase, and Citi took the top three spots in the annual survey. Why this matters: Card-linked installments are BNPL fintechs鈥� leading competitive threat鈥攃ontributing to a drag on their growth.

The US is now Klarna鈥檚 largest revenue market thanks in part to its app solutions, the Klarna Card, and merchant-facing marketing tools.

Buy now, pay later (BNPL) will play a major role in how consumers shop this holiday season as they seek out budget-friendly ways to pay. To capture a bigger share of holiday sales, BNPL provider Klarna has introduced a new suite of tools to help bridge the digital-physical gap with AI-powered technology and shoppable media.

ChatGPT鈥檚 latest update could turn it into a shopping engine: Instacart, Klarna, and Shopify are experimenting with offering users personalized recommendations.

Klarna will generate $33.38 billion in US buy now, pay later (BNPL) payment value by 2027, pulling ahead of Affirm in a period of massive growth for BNPL providers, per our forecast.

Google said today it is rolling out its Product Studio tool this week, which uses AI to help merchants create and manage product imagery. If that sounds familiar, it鈥檚 because Amazon Ads launched something similar last week. But it鈥檚 not just Amazon and Google that are leaning harder into generative AI. Walmart is incorporating the technology into search to give shoppers more relevant results, while Klarna is using AI-powered video to expand users鈥� time spent with the platform.

Klarna. Marketing Dive. Monks. Ogilvy. Smartly.io. Synthesia. The Coca-Cola Co. The Keenfolks. Volkswagen.

Klarna had the highest score of any fintech, coming in fourth place. Our take: Investing in debit card-linked offerings can help smaller banks and credit unions avoid losing out on payment volume and make them more competitive with larger issuers. It would give them an early mover advantage: Chase is the only top issuer with an installment offering tied to its debit cards.

Klarna shows genAI's potential in transforming marketing: Tools enable efficiency and innovation but need ethical guidelines and human oversight.

Klarna. PayPal. VantageScore.