Klarna Launches Browser Extension for Payments & Coupons

Klarna Launches Desktop Browser Extension with Integrated Payments and Coupon Features

Klarna, a prominent fintech startup, is introducing a desktop browser extension designed to mirror the functionality of its mobile application – directly within a computer’s web browsing experience.

Automatic Coupon Application and Piggy Acquisition

The extension provides users with the ability to manage their Klarna payments. Furthermore, it automatically searches for and applies available coupon codes during the checkout process on various websites.

This automatic couponing capability was obtained through the acquisition of Piggy. Originally, Piggy developed a browser extension focused on identifying coupons and cashback opportunities for online shoppers. The financial details of this acquisition, initially reported by FinanceFWD, have not been publicly disclosed by Klarna.

Competition with PayPal and Honey

This strategic move positions Klarna in direct competition with PayPal, which previously acquired Honey for $4 billion. Honey also offers a browser extension that streamlines the application of coupon codes at checkout. Consequently, both PayPal and Klarna are vying to establish dominance in the browser extension shopping space.

Transition for Piggy Users and Team Integration

Current users of the Piggy extension will be transitioned to the new Klarna extension. They have the option to transfer their existing Piggy data or begin with a fresh Klarna account.

Prior to the acquisition, Piggy employed 70 individuals and served a user base of 1.2 million. These employees are now integrated into Klarna, focusing on the integration of Piggy’s couponing technology into Klarna’s broader product suite.

Reward Options Vary by Region

Beyond coupon aggregation, users may also earn cashback or gift cards, contingent upon their geographical location. Customers in the U.S. and Germany are eligible for cashback rewards, while those in the U.K. and France will receive gift cards.

Image Credits: Klarna

Expanding Beyond Couponing: Buy Now, Pay Later Integration

The new Klarna extension offers more than just coupon savings; it also facilitates Buy Now, Pay Later (BNPL) transactions with Klarna. The company is widely recognized for its installment payment solutions.

Currently, several methods exist for utilizing Klarna’s installment payment options. If an online store features a Klarna button during checkout, users can log in to their Klarna account and select a deferred payment plan, or opt to pay immediately.

In-Store and Virtual Card Options

Klarna also provides BNPL options for purchases made in physical stores. In select markets, a Klarna card is available, allowing users to pay up to 30 days after the transaction, both online and offline.

For online stores that do not directly support Klarna, users can generate a one-time virtual card through the Klarna mobile app. This card functions like a standard Visa card, but charges are distributed across multiple installments.

Desktop Card Generation with the New Extension

Klarna’s new browser extension enables the generation of these one-time virtual cards directly from a desktop browser. The card details can then be copied and pasted into the payment field during checkout.

Synchronization Between Mobile App and Extension

The mobile application and browser extension are designed to work in tandem. For example, items saved on a computer can be tracked within the Klarna mobile app.

Currently, the extension is compatible with Google Chrome and Microsoft Edge. Plans are underway to extend support to Firefox and Safari.

Availability and Future Expansion

The extension is currently available for download in the U.S., the U.K., Germany, and France, with plans for broader international rollout in the future.

A Consumer-Focused Strategy

This new product demonstrates Klarna’s commitment to developing a direct-to-consumer offering, rather than solely focusing on business-to-business payment solutions. PayPal has established itself as a leader in the digital wallet sector, and it will be interesting to observe whether Klarna can effectively compete and become a preferred payment method for online consumers.