Swedish fintech company Klarna has launched its inaugural subscription plan, "Klarna Plus," priced at $7.99 per month.
Subscribers gain benefits such as waived service fees with Klarna's One Time Card, double rewards points, and exclusive discounts. A welcome offer saves subscribers $8 on their first Klarna Plus purchase. With a focus on enhancing the shopping experience through a subscription model, Klarna aims to deepen engagement with its 37 million U.S. consumers. Notably, Klarna Plus eliminates service fees for users of the One Time Card, potentially saving loyal customers about $12 monthly. Subscribers in Klarna's rewards club earn double points on purchases, facilitating access to rewards from popular brands.
The plan also provides special discounts at retailers like Nike, Coach, and Macy’s, totaling up to $30 per month. Klarna plans to introduce additional features soon. This move into the subscription market is strategically aimed at boosting recurring revenue ahead of an anticipated initial public offering (IPO).
Investors view subscription revenue as more stable and predictable compared to one-time transactions. Klarna also plans to expand its high-yield savings account beyond Germany and Sweden.
Tech Crunch