Dive Brief:

• Adding another feature to its offerings, Klarna released a new search tool that helps customers compare prices before making purchases, according to a Wednesday announcement. The buy now, pay later platform also debuted shoppable video content, a platform for creators, and tools to help support the the planet within its app.
• With Klarna‘s in-app browser, customers can compare prices, delivery options, sizes and colors of products at various retailers. The tool will also look for and automatically apply coupon codes to their orders, the company said.
• Within the Watch and Shop section of the Klarna app, customers can view tutorials, product unboxings and reviews from brands and creators. From there, they can buy the items they see in the videos, per the announcement.

Dive Insight:

Klarna’s new intelligent search tool is meant to organize a vast array of search results for consumers, so they can easily find the products they want at the best price. The buy now, pay later platform also states that its search engine is unbiased.

“Consumers have extremely high expectations around how they shop and pay,” Sebastian Siemiatkowski, co-founder and CEO of Klarna, said in a statement. “But payments only solve one part of the puzzle. The new products revealed today mark a major milestone in Klarna’s evolution to becoming a place where consumers and retailers can now search, discover, and create. From inspiring product discovery all the way to delivery tracking, digital receipts and seamless returns — we are powering e-commerce and accelerating trade across the world.”

The rollout of its new shoppable content and its search tool follows other updates the company has made to the platform. In May, the company introduced its virtual shopping feature, which allows consumers to search for and buy items online and receive product guidance from employees through live chat or video call.

The introduction of new features comes as Klarna faces stiff competition from other buy now, pay later companies. Klarna comprised 27.5% of BNPL app downloads in Q3 2022, down from 40.6% in the previous quarter. Meanwhile, Affirm made up 30% of U.S. consumer downloads in the third quarter, an increase from 25% in Q2. Afterpay also saw a rise in its share of U.S. consumer downloads from 21% in Q2 to 25% in the following quarter.

Klarna joins retailers like Wayfair and Wish in introducing in-app video features. Even Walmart is getting in on the trend with shoppable videos and other content.