Klarna
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Simplifying payments with Monthly
I led the research and design of Klarna Monthly across checkout and the app. Working with Product, I helped simplify how customers paid and what they paid for, contributing to ~ 3× increase in active Monthly users.
Year
2022
Role
Senior Product Designer
Contribution
UX / UI
Research
Strategy
How could we make multiple Pay Later purchases easier to keep track of and harder to forget? Monthly was Klarna’s way to combine Pay Later purchases into one monthly invoice. My research showed that, presented as a separate payment method, Monthly was perceived as an another credit product. Customers didn’t recognise it as a consolidated Pay Later invoice.
Alongside the product changes, we adopted Klarna’s new visual language, bringing modular layouts and a broader colour palette
In checkout, I redesigned Monthly’s experience so it sat under Pay Later instead of appearing as a separate payment method. I coordinated the work with the checkout designers because it was happening alongside a broader migration to a new Bubble UI theme.
We also removed the consolidation fee. That made Monthly easier to adopt, but it created a significant business question because the fee had generated around SEK 40 million in revenue.
Monthly Invoice at checkout
In the app, I worked with the app designers to carry the same idea into payment management. We reduced the emphasis on the Monthly product name and focused the interface on what customers actually needed to know: what was due and when.
One invoice didn’t have to mean one size fits all. Customers could pay purchases together and still give a particular purchase a little more time.
I designed Autopay flow to reduce the risk of customers forgetting to pay, and I designed Snooze so they could move one purchase to the following month without postponing the entire invoice.
Snooze also gave us a better revenue model. Instead of charging everyone for the basic benefit of combining their purchases, Monthly was free to use and customers paid when they wanted additional flexibility.
From the release of Snooze through Q2 2023, it generated approximately SEK 90 million.
A selection of the explorations and iterations
Results
Fee removal helped approximately triple active Monthly users. And paid Snooze feature more than offset the revenue loss, delivering an approximately SEK 50 million net revenue gain.
Active users are customers making at least two purchases per invoice.