The super app model has achieved significant success in China with companies like Alipay and WeChat Pay. Klarna aims to replicate this strategy by expanding its service offerings.

Most recognized for its buy now, pay later (BNPL) services, Klarna recently introduced a new mobile phone plan in the U.S., offering unlimited data, calls, and text messages.

In an interview with CNBC, Klarna CEO Sebastian Siemiatkowski outlined plans to build a platform that can handle various aspects of users’ financial and non-financial needs.

Concerns About Closed Ecosystems

The super app model allows for seamless handling of payments, shopping, and other services within one application. While companies like Ant Group’s Alipay and Tencent’s WeChat Pay have established extensive ecosystems, there are concerns about these closed platforms stifling growth, particularly in challenging economic climates.

Reducing Complexity

A major challenge for Klarna is that it has attempted the super app approach before with mixed results. According to Siemiatkowski, the new differentiator lies in advanced artificial intelligence (AI) technology. The AI-driven platform aims to simplify and personalize user experiences by cutting through the clutter of the crowded market.

For example, if Klarna’s system identifies that a user is overpaying for their mobile plan, it can recommend alternatives and facilitate switching providers.

Beyond its BNPL roots, Klarna’s move into mobile phone plans and planned debit card offerings is designed to strengthen its U.S. market position. These initiatives are expected to propel the company towards becoming a comprehensive financial service provider.