Swedish fintech company Klarna announced today its first subscription plan, “Klarna Plus,” for $7.99 per month, featuring benefits like no added service fees when using Klarna’s One Time Card, double rewards points and access to exclusive discounts with popular brands.
The company also has a new welcome offer for subscribers, saving them $8 on their first Klarna Plus purchase.
“Our research indicates that dedicated Klarna users are looking for an enhanced shopping experience through a subscription model,” said David Sandstrom, chief marketing officer, in a statement. “Klarna Plus addresses this demand, allowing us to deepen our engagement with 37 million loyal U.S. consumers, while also further diversifying a portfolio of payment and shopping solutions.”
One of the most appealing perks about Klarna Plus is that shoppers who use Klarna’s One Time Card — a virtual single-use payment card — don’t pay any service fees. The company says this may help loyal Klarna users save approximately $12 monthly.
In addition, subscribers who belong to Klarna’s rewards club collect double the points on purchases, making it easier to rack up points and unlock Klarna rewards from brands like Adidas, ASOS, Best Buy, COACH, Foot Locker, H&M, Nike, Macy’s, Missguided, Saks OFF 5th, Sephora and Shein.
The new monthly subscription plan also includes special discounts at Nike, Coach, Macy’s, Instacart and Goat, totaling up to $30 per month. Klarna says it will launch more features soon.
The company is likely entering the subscription market to bolster recurring revenue ahead of an anticipated initial public offering (IPO). To investors, subscription revenue is believed to be more stable and predictable compared to one-time transactions. Klarna will also expand its high-yield savings account to other markets, which is currently available only in Germany and Sweden.
Affirm, another major player in the buy now, pay later (BNPL) sector, is reportedly considering a monthly plan as well.