April 2

12:37

Revolutionizing Social Shopping: Klarna’s Shoppable Video Case Study

Klarna

Role

Senior Product Designer @ Social Shopping

Project Timeline

2023-2024

Industry

eCommerce, FinTech

Team

Product Managers, Developers, User Researchers, Data Analysts

Tools

Figma, Jira, Maze, A/B Testing Platforms

Klarna, a leading global Buy Now, Pay Later (BNPL) provider, continuously evolves its platform to improve the shopping experience. As social commerce gained momentum, Klarna aimed to create a seamless transition from content to commerce by introducing Shoppable Video—an interactive, engaging feature that enhances in-app shopping experiences.

This initiative was launched as an MVP for the US market, with plans for expansion into the UK, Sweden, Spain, and Germany.

The Problem

Users were highly engaged with social content but struggled to transition from inspiration to purchase, leading to low conversion rates in Klarna’s shopping experience. Despite the rise of social commerce, the lack of seamless integration between video content and transactions caused user frustration and checkout drop-offs. Research revealed that the existing journey involved too many steps, unclear CTAs, and a disconnect between engagement and conversion, ultimately resulting in missed revenue opportunities for Klarna.

What Was Broken?

Users frequently engaged with social content but struggled to transition from inspiration to purchase. This disconnect between video content and shopping resulted in low conversion rates and missed revenue opportunities.

Key Research Insight

After conducting 100+ research studies (A/B testing, surveys, and user interviews), we found that:

Users often engaged with videos but felt disoriented when trying to purchase.

The existing journey contained too many steps, causing friction in the buying process.

Users failed to complete onboarding, leading to lower activation and conversion rates.

Solution

To bridge the gap between content engagement and seamless purchasing, we designed and launched Shoppable Video within Klarna’s mobile app. Through 100+ research studies, A/B tests, and usability sessions, we identified key friction points and optimized the experience by embedding interactive video overlays, clear CTAs, and a streamlined checkout flow. We developed a component-based design system, ensuring scalability across different markets while maintaining a cohesive UX. Close collaboration with PMs, engineers, and data analysts allowed for continuous iteration, refining the feature to drive higher engagement and conversion rates.

Research & Discovery

Conducted competitive analysis on social shopping platforms like TikTok, Instagram Shopping, and Pinterest.

Analyzed heatmaps and session recordings to pinpoint friction points in the existing purchase flow.

A/B tested different interaction models (e.g., direct checkout vs. save-for-later options).

UX Strategy & Ideation

Developed three navigation models for seamless exploration and interaction with shoppable videos.

Created prototypes testing various user engagement methods, including in-video overlays and embedded CTAs.

Collaborated with product managers and engineers to ensure the solution was scalable and aligned with Klarna’s product roadmap.

Execution & Implementation

Designed a scalable component-based design system to ensure cross-market consistency.

Integrated a seamless checkout flow directly into the video experience, reducing purchase friction.

Iteratively improved UI/UX based on continuous data-driven feedback and usability testing.

Evolution of the player

The Impact (Results & Success Metrics)

The launch of Shoppable Video significantly improved user engagement, retention, and conversion rates. Users spent 180% more time interacting with videos, while the click-through rate more than doubled, reaching 6.5%. Most importantly, the checkout conversion rate increased by 75%, proving that a seamless shopping journey directly impacts sales. By integrating personalized video recommendations and an in-video checkout experience, Klarna successfully transformed passive viewers into active shoppers. The success of the US launch led to expansion into UK, Sweden, Spain, and Germany, reinforcing Klarna’s position in social commerce and driving measurable business growth.

Click-through rate (CTR)

Before:
2.8%

After:
6.5%

Improvement:
+132%

Checkout conversion rate

Before:
12%

After:
21%

Improvement:
+75%

User retention post-interaction

Before:
24%

After:
39%

Improvement:
+62%

Business Impact

The successful US launch paved the way for expansion into UK, Sweden, Spain, and Germany, driving increased engagement, conversions, and revenue growth for Klarna.

Lessons Learned & Takeaways

This project reinforced the power of data-driven design and iterative testing in shaping high-converting user experiences. We learned that reducing friction in the shopping journey—by embedding checkout within videos—directly impacts conversions. Additionally, building a scalable design system ensured a smooth global rollout. Moving forward, I would explore even more personalization features to further enhance engagement and drive repeat purchases.

Data-driven iteration is key – Real-time A/B testing and research insights significantly influenced UX decisions.

Reducing friction improves conversion – Users abandon purchases when they encounter too many steps.

Scalability is crucial – Creating a modular design system allowed for seamless international expansion.

Summary

The Klarna Shoppable Video project was a bold move into the rapidly evolving world of social commerce, aiming to blend engaging content with seamless, in-app shopping experiences. Klarna recognized that while users were highly active within the app and consuming content, there was a significant drop-off when transitioning from viewing to purchasing—a friction that was limiting growth in a key market segment.

As Senior Product Designer, I was brought in to lead the design of this feature from the ground up—ensuring it was not only user-friendly and engaging, but also scalable for global rollout. My approach was rooted in deep research and continuous iteration, working closely with cross-functional teams across product, engineering, and research. We conducted over 100 research and testing sessions, including A/B tests, user interviews, and session heatmaps to understand pain points and behavioral patterns.

I designed and delivered a component-based, modular UI that enabled the embedding of shopping functionality directly into video content—removing barriers between inspiration and action. Through thoughtful interaction design, strategic use of CTAs, and a streamlined checkout process, we significantly improved the user flow.

The results spoke for themselves: we saw a 75% increase in conversion, 132% growth in click-through rates, and a 180% boost in video engagement time. These outcomes not only validated our design decisions but also led Klarna to expand the feature to multiple international markets, further strengthening its position in the creator economy and social shopping space.

This project was a prime example of how research-backed design and tight collaboration can drive real business outcomes. It also highlighted the value of building scalable design systems that support both product quality and velocity, while delivering consistent UX across regions. It was one of the most rewarding challenges of my career—balancing creativity, data, and strategic thinking to deliver measurable impact at scale.

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Currently I’m open to new opportunities and projects. Feel free to reach out.

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2025

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Peter Marc © 2024 at

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12:37:07