BNPL firm Klarna launches subscription ahead of IPO

Klarna has launched a new ‘Klarna Plus’ subscription service in the US which will offer customers of the buy-now-pay-later firm a range of benefits including waived service fees and shopping discounts.

The launch of the $7.99 per month subscription service in the US comes ahead of an anticipated initial public offering (IPO) that could value the Swedish company at more than $15 billion.

The company said that the dropped service fees could save customers around $12 per month, while they could also benefit from discounts at participating retailers including Nike, COACH and Instacart. Members will also receive double rewards points on purchases with Klarna rewards club.

Klarna has reported sustained growth in the US over recent years, with its customer base expanding to 37 million over the past 12 months. Its AI-powered Klarna App has over 7 million monthly users in the US.

David Sandstrom, chief marketing officer, Klarna, said: “Our research indicates that dedicated Klarna users are looking for an enhanced shopping experience through a subscription model. Klarna Plus addresses this demand, allowing us to deepen our engagement with 37 million loyal US consumers, while also further diversifying a portfolio of payment and shopping solutions.”

The company previously piloted the subscription service in Utah last year, with Sandstrom telling CNBC that the results show that the subscription is “a no brainer” for about 15 per cent of the company’s heaviest users.



Share Story:

Recent Stories


The human firewall: Activating employees to safeguard financial data
As financial services increasingly embrace SaaS and cloud-based technologies, they face emerging threats to safeguard sensitive customer data. While comprehensive IT security measures are essential, the active involvement of employees across organisations is pivotal in ensuring the protection of sensitive data.

Building a secure financial future for instant payments: The convergence of ISO 20022 and fraud detection
The financial landscape is rapidly evolving its approach to real-time transactions under the ISO 20022 standard, and financial institutions must take note. With examples such as the accelerated adoption of SEPA Instant Credit Transfers in Europe and proposed New Payment Architecture (NPA) programme in the UK, the need for swift and effective fraud detection is more crucial than ever.

Data Streaming and Consumer Duty: Transforming customer experience in banking
Introduced at the end of July, the Consumer Duty is a game-changing new set of rules and guidance for financial services institutions in the UK, and companies must look to modernise their systems in adherence with it in mind to create the best customer experience possible.

From insight to action: Empowering financial institutions through advanced technology and collaborative information sharing
The use of Information sharing in enhancing financial crime prevention has been universally agreed as being beneficial. However no-one has been able to agree on how information can be shared safely without breaching data protection laws or having the right systems to facilitate this, Information sharing has re-emerged as a major consideration for financial institutions (FIs) ahead of the Economic Crime and Corporate Transparency Bill being made into law in the UK.