Klarna acquires Apprl to boost retail marketing

Dive Brief:

In a move that further expands its roster of retail marketing services, Klarna has acquired Apprl, a platform that facilitates collaborations between creators and retailers, the company announced.
The Apprl acquisition allows Klarna's retail partners to work with creators on shoppable content and measure campaign results, the company said.
For Klarna, the Apprl acquisition offers the payments platform a chance to "create an enriching and informative shopping experience for consumers everywhere while accelerating retailer growth," Klarna CEO Sebastian Siemiatkowski said in a statement.

Dive Insight:

Klarna's Apprl deal follows other significant moves by the company over the past year, including its acquisition earlier this month of Hero, a social shopping company that allows in-store retail workers to create content and give shoppers advice. Klarna raised $1 billion in funding in March, pushing its valuation to $31 billion. And last October, the company secured a five-year partnership with Macy's to offer installment payments to the department store's shoppers.

Klarna follows Poshmark, Verishop and Instagram in venturing into social commerce. The rise of e-commerce during the COVID-19 pandemic has made social commerce even more relevant for retailers and shoppers alike, with research suggesting that social content is influencing what shoppers buy. According to a study from marketing and consumer research company NPD, 51% of survey respondents said they made a purchase due to content they saw on Facebook and Instagram.

Many social platforms, such as Pinterest, Instagram and Facebook, are also focusing on helping creators monetize their online following, while brands are seeking to tap into influencers' audiences. A survey from ad and marketing consultant Advertiser Perceptions found that marketers are setting aside 20% of their digital ad spending for branded content and influencer marketing, a larger share of the budget than any other category.

"As social shopping becomes a core element of the retail experience, we believe Klarna's position at the center of the shopping ecosystem is instrumental in connecting retailers to both consumers and content creators who resonate with their brand audiences," Siemiatkowski said in a statement.