Sebastian Siemiatkowski, the CEO of Klarna, is expressing strong optimism about the transformative potential of artificial intelligence (AI) as the company aims to broaden its suite of services for its 100 million users.
On Wednesday, Klarna — known for its innovative “buy now, pay later” payment platform — will unveil mobile phone plans in the United States through a collaboration with telecom startup Gigs. These plans will feature unlimited data, calls, and texts at a monthly rate of $40.
This new mobile service aligns with Siemiatkowski’s ambition to evolve Klarna into a comprehensive “super app” that transcends traditional financial offerings.
Efforts to transform Klarna into a super app are not new. The firm has previously attempted to establish this model — akin to China’s Alipay and WeChat Pay — but faced challenges due to complexity that led to consumer confusion. Siemiatkowski acknowledged in a recent interview with Finance Newso that such attempts had backfired in the past.
Nevertheless, he remains confident that AI will significantly enhance Klarna’s capabilities in the upcoming initiative.
“In this new AI-driven landscape, there exists a remarkable opportunity to refine customer service and deliver a more personalized experience,” he asserted.
Siemiatkowski emphasized that AI allows for tailored interactions with users, adapting services to meet individual needs more effectively than ever before.
Super apps have gained traction in China and other Asian markets, serving as holistic platforms for various mobile functions, including ride-hailing and food delivery, along with payment and communication services.
Despite their success in Asia, the uptake of super apps in Western nations has been slower due to various challenges.
‘Tremendous opportunity’
Siemiatkowski is dedicating considerable time to exploring AI’s potential.
“There’s a tremendous opportunity,” he said, “but ensuring it functions reliably is key.” He pointed out that while AI can generate impressive results, consistency is crucial.
Looking ahead, he envisions Klarna evolving into a “digital financial assistant” that addresses users’ daily banking needs.
“If we identify that you may be overspending on your carrier subscription, for example, we can not only suggest a better pricing model but also enable you to implement it with just one click,” Siemiatkowski explained.
Reflecting on past challenges, Siemiatkowski noted that earlier attempts to transition into a super app faced setbacks due to technological limitations at the time.
Klarna reported a loss of $99 million in the quarter that ended in March, attributing this to one-time expenses related to depreciation, share-based payments, and restructuring efforts.
Perception problem
However, Klarna must navigate a significant perception issue. In the U.S., the company has become predominantly associated with the “buy now, pay later” (BNPL) method, which permits consumers to make purchases through monthly, often interest-free, installments.
In contrast, consumers in Europe recognize Klarna as a versatile financial service for instant payments and credit plans alike, as Siemiatkowski highlighted.
He expressed disappointment over the negative commentary surrounding Klarna in the U.S., particularly following its partnership with DoorDash earlier this year, which sparked backlash online.
Siemiatkowski pointed out that such criticism is less prevalent in German and Nordic markets where Klarna operates more like a conventional payment system akin to PayPal.
Looking to the future, he envisions Klarna acting as a comprehensive financial platform, incorporating additional services that could include investment features for stocks and cryptocurrencies — a development he believes is “not far off.”
“The capability to facilitate investments in both stocks and crypto is quickly becoming a baseline offering for neobanks,” he noted, emphasizing that Klarna does not seek to directly compete with prominent U.S. trading apps such as Robinhood.
When will Klarna IPO?
Klarna previously postponed its plans for an initial public offering (IPO) in April, coinciding with U.S. President Biden’s announcement of significant tariffs affecting numerous countries.
Siemiatkowski stated that Klarna has achieved key milestones to prepare for a public offering, such as developing a strong U.S. presence.
“The U.S. has now become our largest market in terms of user count, representing a profitable segment for us,” he remarked, indicating that necessary groundwork has been laid.
Regardless of whether an IPO occurs, Klarna’s strategic objectives will remain unchanged.
“This approach not only enhances liquidity for our shareholders but also provides the company with various avenues for self-funding and showcases our establishment within the industry,” Siemiatkowski concluded.
