Klarna brings price comparison tool to more markets to diversify revenues and increase engagement

The news: Klarna introduced its price comparison tool in the UK, Sweden, and Denmark after launching the service in the US last month, per a press release.

Here’s how it works: The search engine lets Klarna app users find products and compare prices across thousands of retailers. It includes a feature that lets users filter results based on product color, size, customer ratings, store availability, and shipping options.

The solution is powered by PriceRunner, the Nordic price comparison engine that Klarna acquired earlier this year.

The opportunity: Expanding the price comparison tool gives Klarna three key benefits.

• Increased sales volume. App users can already purchase from retailers that aren’t part of Klarna’s partner network. Customers using the price comparison tool may find it more convenient to stay within the app and checkout with Klarna’s installment offerings or Pay Now feature—helping increase its payments volume, which grew 21% year over year (YoY) in H1.
• Affiliate marketing revenues. The price comparison tool could give Klarna’s affiliate marketing program a boost by attracting prospective partners: It will likely help drive traffic and increase conversions for those involved in the program. As the holiday season kicks into high gear, retailers will likely seek out marketing opportunities that can help maximize sales.
• Higher brand engagement. As competition in the buy now, pay later (BNPL) space heats up, value-added services like comparing prices may help Klarna stand out from rivals. It can also keep Klarna top-of-mind for consumers as they begin holiday shopping.

Why it’s worth watching: Klarna may be feeling pressure from the fintech market crunch and incoming BNPL regulation, which may complicate operations—making it more important than ever to expand its reach and sustain its bottom line.

• Bringing its price comparison tool to more countries can help Klarna capture more global revenues.
• It also complements Klarna’s other recent services, like Spotlight—a collection of new and revamped services within its platform.

While the Swedish BNPL provider builds out its offerings, it's also forging deals to bring its core BNPL product to more consumers: European payment provider Viva Wallet, for example, added Klarna’s BNPL product as a payment method.

Read on: Check out our spotlight report on Klarna to learn about Klarna’s strategy and the features helping it drive growth.

This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.

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