According to David Sandstrom, Klarna's chief marketing officer, the firm took inspiration from Chinese tech platforms, which he said have mastered the art of algorithm driven-shopping.
The Klarna app has been redesigned to tailor product recommendations to users based on their shopping habits using artificial intelligence.
Klarna and other buy now, pay later products proved popular during the onset of the Covid-19 pandemic.
Meanwhile, buy now, pay later has come under scrutiny from regulators because of fears that it is pushing some consumers, particularly younger people, into arrears.
In the U.K., the government has proposed new rules aimed at adding some friction to the process of applying for a buy now, pay later loan.