BNPL, Member Exclusive

Why is Klarna diving into subscriptions?

  • Klarna has recently launched a new subscription-based product called Klarna Plus in the U.S. 
  • Klarna Plus is the firm’s attempt to future-proof and IPO-proof itself. 
close

Email a Friend

Why is Klarna diving into subscriptions?

Klarna has recently launched a new subscription-based product called Klarna Plus in the U.S.

The news: With a monthly cost of $7.99, Klarna Plus earns consumers double reward points. Users can spend with Klarna’s One Time Card at retailers outside of Klarna’s network to shop without paying service fees. Consumers will also have access to exclusive discounts through the subscription.

“The main proposition of Klarna Plus right now is that you don’t pay any service fees, so if you love Klarna and if you love shopping at Target and Walmart, it makes a ton of sense financially,” said David Sandstrom, Klarna’s Chief Marketing Officer.

Context: The BNPL provider-turned-ecommerce-platform’s offering comes as the company gears up for its IPO. Through its subscription offering the firm can build out a recurring revenue stream by locking in customers through Klarna Plus. There is speculation that Wall Street’s love of subscription models will bolster the company’s IPO work. Perhaps one reason why investors love subscription models is that the recurring revenue is forward-looking and companies that have made a shift towards these models have raised their revenue by a lot more than those who haven’t.


subscription wall for TS Pro

0 comments on “Why is Klarna diving into subscriptions?”

10-Q, Member Exclusive

Banks tackle the growing issue of investment banking burnout — But is it actually working?

  • We dive into the steps banks have taken to improve work-life balance for employees following the infamous Bofa employee incident.
  • We also assess whether these initiatives are effective, and where more can be done.
Sara Khairi | April 14, 2025
10-Q, Member Exclusive

BNPL players turn up the heat: Affirm and Klarna compete for banks, growth, and market leadership

  • BNPL providers, Affirm and Klarna, initially grew by integrating into e-commerce checkouts, and are now contending for partnerships with major banks.
  • With banks now entering the BNPL space, firms like Affirm and Klarna have an opportunity to further solidify their positions and for the BNPL industry at large.
Sara Khairi | April 07, 2025
10-Q, Member Exclusive

A quarter into 2025, where are Goldman and Apple steering their strategies next?

  • We look at what’s been unfolding at Goldman Sachs and Apple since the start of the year.
  • With consumer banking behind, Goldman bets on AI, while Apple’s fintech push hits turbulence with internal leadership and tech woes.
Sara Khairi | March 31, 2025
Member Exclusive, The Quarterly Review

The Quarterly Review: Current’s CTO Trevor Marshall reports on Model-Driven Success

  • Trevor Marshall, Current's CTO, reports success with model-driven deployments that boosted the firm's Paycheck Advance product.
  • Through focused model improvement and heuristic deployment, Marshall's teams enhanced ML infrastructure to better predict payroll timing and significantly improve fraud detection.
Rabab Ahsan | March 25, 2025
10-Q, Member Exclusive

With the CFPB muzzled, what’s stopping FIs and fintechs from playing dirty?

  • Fintechs — and now banks — are moving more deeply into stablecoins, but their playbooks differ based on their respective strengths and constraints.
  • Stablecoins bring with them both immediate and far-off opportunities and risks, and how the financial industry navigates these will determine their long-term impact.
10Q Editor | March 24, 2025
More Articles