Payment platform Klarna adds a carbon footprint tracking feature to products that allow consumers to control the environmental impact of their activities.
If packaging of purchased food must indicate its fat, sugar, or salt content, why not make the carbon footprint of product production, transportation, and purchase evenly visible? Klarna is a payment service provider for e-commerce Tuesday announcement This type of information should also not be treated as a luxury that consumers have to pay for separately, but it can be seen as an essential component of the buying process.
In this regard, the Swedish emerging company announced a new feature in its application that will provide greater transparency in this regard to customers by assessing the carbon footprint associated with online shopping. In this way, consumers can take new aspects into account in their informed decisions, for example by comparing not only the price but also the emission characteristics of each product or evaluating their performance.
For now, the new feature only serves the last, as it only indicates the estimated values after purchasing the merchandise, but Klarna plans to update the app soon and compare the features of each product before purchasing. An important component of the initiative is that Klarna will not charge sellers for offering a “CO2 tracker,” which means that in principle it will not depend on who can appear in a more customer-friendly color.
The app displays CO2 emissions related to purchases in kilograms in the usual way, but also assigns activities to help users relate to the values obtained: for example, it shows how long a vehicle could have the same amount of emissions.
Pay later if you can
Klarna is currently Europe’s most valuable startup after earning at least $ 1 billion in a round of investments that closed a month and a half ago, giving it a valuation of $ 31 billion. Linked to this is the company’s Givon initiative, which provides 1% of its newly acquired capital, $ 10 million, for initiatives to protect climate and conserve biodiversity, and will create opportunities for similar offers after transactions in their application.
The company’s most important product, with 250,000 merchants and 90 million users, is the microcredit service that, when integrated into e-commerce platforms, leads to lending to cumbersome merchandise or the ubiquitous use of credit cards through its “buy now, pay later” installment solution. It is also licensed as a bank, building the largest network of its kind in Europe through its open banking services and offering financial products in some markets.
When it comes to “buy now, pay later” lending, it should be noted that China announced tougher regulations for online microcredit services last November, but there is widespread criticism in Europe, among other things, for the rapid rise in Loan value and potential financing. Risks. The UK government announced in February that it would require providers like Klarna to verify their creditworthiness as more and more young consumers are beating themselves up with such loans, which has become even more exciting during the period of pandemic restrictions.