CareCredit Women's Health May 2024 Banner

Klarna Expands ‘Sign-in With Klarna’ for Faster Online Checkout

Klarna app

Swedish FinTech Klarna is expanding its “Sign-in With Klarna” offering to 22 new countries, including the U.S.

The service, originally launched in the company’s home country, lets shoppers fast-track online purchases and get personalized offers from merchants, Klarna said in a Wednesday (Feb. 14) news release.

“Apple and Google’s elimination of third-party cookies has made it harder for payment services to automatically fill in customer details to speed the online checkout,” the company said in the release.

“Sign-in with Klarna solves this for both consumers and merchants and presents a challenge to tech giants Apple, Facebook, and Google in the global verification industry,” which Klarna says is expected to reach $18.1 billion by 2027.

According to the release, the service lets consumers save time by logging in or registering with just a few taps for a faster checkout.

Upon registration, the customer picks the data they want to share with the merchant and sign up for membership/bonus programs. Merchants can use that data — with the customer’s consent — to provide recommendations based on the shopper’s purchase history.

“The verification of the consumer’s data is entirely handled by Klarna, which means a cost saving for merchants who do not need to pay third-party services to confirm the customer’s identity via email or SMS,” the release said.

Research by PYMNTS Intelligence has shown the importance of offering customers a smooth checkout experience.

Two-thirds of the consumers we surveyed said that this experience can be “very or extremely” influential when it comes to deciding on whether to shop with a merchant again.

And as many as 70% of online shopping carts are abandoned because of a less-than-optimal checkout process, which means that checkout can have a significant effect on merchants’ conversions and sales.

Klarna’s expanded service follows last month’s announcement of Klarna Plus, a $7.99 per month subscription program that allows U.S. customers to avoid service fees, collect rewards points and get discounts from brands such as Nike, Macy’s and Instacart.

The company said it is aiming to tap into a global subscription commerce market, which is expected to grow to $2.4 trillion in value by 2028. America represents Klarna’s biggest market, and is where the company is weighing an initial public offering (IPO).