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By prioritizing user control and privacy, and removing the frustration of remembering multiple passwords, Sign in with Klarna promises to offer a more seamless online shopping experience for customers.

Tech giants like Google, Apple and Facebook have long offered a single-click, sign-in solution, but their dominance is facing a new contender: Sign in with Klarna. This innovative service, which was launched with great success among Swedish merchants, has set its sights on the United States market, and its potential impact could be significant. So why are the tech giants suddenly feeling the heat?

A Baymard Institute study revealed that 17 percent of online shoppers in the United States have abandoned purchases due to lengthy or complex checkout processes. This password fatigue is where Sign in with Klarna enters the scene, offering an easy alternative.

Sign in with Klarna empowers users by putting them in control. No more flimsy passwords, which are vulnerable to breaches; instead, you log in securely with your existing Klarna credentials, Raji Behal, Head of Western and Southern Klarna, told Fintech Finance.

Data and Privacy: A New Battleground

The question remains: can Klarna deliver on its promises and avoid the pitfalls of its predecessors?

Unlike the others, Sign in with Klarna utilizes existing Klarna credentials for secure and seamless logins. This eliminates the need to remember separate passwords and minimizes data sharing with third parties. Additionally, Klarna offers a transparent data privacy policy, allowing users to control the information they share. This approach resonates with privacy-conscious consumers, potentially shifting the market dynamics.

“We add another dimension to improving the customer journey,” Behal told Fintech Finance.

And she’s right. Sign in with Klarna prioritizes user control and data privacy, offering a stark contrast to the often opaque practices of tech giants.

Klarna offers a transparent data privacy policy, allowing users to control the information they share. This approach resonates with privacy-conscious consumers, potentially shifting the market dynamics.

Instead of handing over your data in exchange for a single click, Sign in with Klarna empowers you to choose what information you share with stores. This personalized approach could lead to a more tailored shopping experience where recommendations and offers align with your unique preferences.

Behal’s vision signifies a shift in the power dynamics of the online landscape. “We give consumers control over their data,” she said.


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This resonates with a growing consumer sentiment. A 2023 study, conducted using data from Publishers Clearing House Consumer Insights, found that most Americans (86 percent) are more worried about their privacy and data security than the status of the United States economy. Moreover, the majority (two-thirds) are in the dark about how their data is used and who has access to it.

Sign in with Klarna addresses this concern head-on, potentially putting the brakes on the data-driven dominance of tech giants.

Growth Potential

A study by McKinsey found that personalization can increase sales by five to 15 percent. Therefore, by offering faster checkouts, Klarna creates a mutually beneficial outcome: shoppers enjoy a smoother experience that enhances customer satisfaction, while merchants benefit from increased conversion rates and higher sales.

A 2023 report states that Klarna is the most downloaded fintech app in Sweden, with 630,000 app downloads, indicating an impressive market share and usage.

“We immediately get a complete profile with just a couple of clicks from the consumer, whereas similar services from Apple, Facebook and Google create a profile that the customer needs to complete since it lacks information such as address and phone number,” Tradera CEO Stefan Öberg said.

“Most Swedes are already familiar with Klarna, so the new login service makes registration much easier for the majority of our customers.”

Market Impact

Klarna’s Swedish success is undeniable. A 2023 report states that Klarna is the most downloaded fintech app in Sweden, with 630,000 app downloads, indicating an impressive market share and usage.

“Despite facing economic challenges and changes, Klarna’s achievements persist in the United States,” Klarna CEO Sebastian Siemiatkowski said. “Our growth is being fueled by the popularity of our expanding AI-driven services, such as the Klarna app, which currently has over seven million users in the United States.”

Merchants using the service have reported conversion rate increases of up to 20 percent.

The End of the Tech Giants’ Reign?

Expanding across the globe, Sign in with Klarna is now available in 23 countries across five continents. This includes major markets like the United States, United Kingdom, Canada and Australia, demonstrating its ambition to become a global player.

Within Europe itself, the service reaches a wider audience in 18 nations, including Sweden, Germany, France, Italy and Spain. These key markets boast early traction with retailers like Rusta, Casall and NA-KD, showcasing its potential in the European market.

Merchants using the service have reported conversion rate increases of up to 20 percent.

Additionally, it caters to Austria, Belgium, Netherlands, Denmark, Finland, Norway, Portugal, Greece, Poland, Czech Republic, Romania and Ireland, further solidifying its European presence.

Siemiatkowski, is confident in the service’s potential, stating that the company expects Sign in with Klarna to become the preferred login method for online shopping within the next five years. “It was an amazing way for me to get close to merchants and get great feedback,” he said.

While it’s too early to declare the end of the tech giants’ dominance, Sign in with Klarna’s arrival marks a pivotal moment. Its focus on user control and data privacy could force established players to re-evaluate their approaches, potentially leading to a more secure and user-centric login experience for everyone.

Kazim Qazi

Contributor Collective Member

Kazim Qazi is the Co-Founder of AppVerticals, a leading app development company specializing in ed tech, health tech, fintech, freight tech, AI, machine learning and data engineering solutions. With over a decade of experience in the tech industry, Kazim brings a passion for innovation and a strategic vision for leveraging technology to drive growth and create impactful solutions. A thought leader in the field, he is dedicated to sharing his insights and expertise through media articles. For more information visit https://www.appverticals.com/

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