Klarna launches its browser extension dedicated to the BNPL
Klarna is the leading BNPL provider in Europe, offering its services from an application. This 100% mobile approach is now changing with the launch of a browser extension dedicated to using Klarna's BNPL services from a computer. This new feature will not only allow the BNPL giant to open up a new customer base that is more adept at shopping via their computer, but also to guard against the arrival of new competitors.
FACTS
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Klarna is launching a browser extension that allows you to pay for purchases in instalments from any online shop (Klarna partner or not), from a computer.
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Thanks to a virtual card generation module. As with the mobile application, Klarna now allows its customers to generate one-time cards from their computer browser. They can then copy and paste the details of their virtual card into the field to validate a payment in instalments.
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The service has so far been in a beta testing phase. More than 100,000 consumers have been involved, validating a model even before its official launch.
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The new Klarna browser extension will allow consumers to enjoy the same experience from a smartphone or a computer.
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However, it adds couponing, auto-refund and gift card functionality to the split-payment service on products purchased.
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The Klarna browser extension is compatible with Google Chrome and Microsoft Edge. Support for Firefox and Safari will be rolled out later.
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The US, UK, Germany and France are primarily concerned, but all Klarna markets will have the extension available soon.
CHALLENGES
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Building an ecosystem: Klarna's browser extension is being launched following the Swedish BNPL giant's acquisition of an online couponing specialist earlier this year. Klarna acquired Piggy; the start-up had 1.2 million users of its services before the takeover.
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Taking advantage of new opportunities: Already very well positioned in Europe, Klarna is opening up a new market with great potential with its browser extension. Desktop shopping still accounts for 32% of all e-commerce traffic, while 44% of online orders are placed from a computer.
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Promoting a seamless experience: With the deployment of its extension, Klarna promises its customers a new shopping experience thanks to the synchronisation of their mobile application and their browser. A transaction started from a computer can be completed from the mobile phone, for example.
MARKET PERSPECTIVE
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PayPal acquired Honey for $4 billion in late 2019. Honey has also created a browser extension that allows coupons to be applied when making an online purchase.
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With the launch of its new service, Klarna is therefore competing with PayPal on the theme of a browser extension dedicated to an optimised shopping experience.
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But Klarna will also have to impose its new offer against other less expected players on this alternative payment market. Microsoft is promising a new multi-payment function (in partnership with the company Zip) embedded in the next version of its Edge browser.