Klarna launched Klarna Plus, a subscription tool that offers users premium benefits and access to exclusive offers.
For $7.99, users receive extra rewards points, a waived service fee for purchases made at retailers that are not in the fintech’s network, and exclusive discounts at retailers.
Klarna counts 150 million active users who make two million transactions every day using its platform.
The subscription economy has been gaining steam since Netflix was founded in 1997. With news this week that buy now, pay later (BNPL) player Klarna is jumping on board, it is apparent the subscription trend is not dying out any time soon.
Yesterday, the fintech unveiled Klarna Plus, the company’s subscription service for its U.S. users. For $7.99 per month, users receive premium benefits that offer Klarna shoppers access to a variety of offers and deals.
“Today marks an exciting milestone for Klarna with the introduction of our first-ever premium subscription service, Klarna Plus,” said Klarna Chief Marketing Officer David Sandstrom. “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 U.S. consumers, while also further diversifying a portfolio of payment and shopping solutions.”
What do users receive for $7.99?
Rewards pointsUsers accrue two rewards points for every $1 spent on purchases with Klarna Rewards Club. This is double the 1 point for every $1 spent that rewards club members traditionally receive.
Waived service feesThe service fees that users incur at retailers outside of Klarna’s network are waived when they pay using their Klarna One Time Card.
Exclusive dealsUsers gain access to special discounts at retailers including Nike COACH, Macy’s, Instacart, and GOAT.
Sign-up offer Users receive $8 off their first Klarna Plus purchase.
Like all subscriptions, this one is only worth the price tag if the user actually uses the service. Here’s a breakdown of each incentive:
Rewards pointsThe rewards points are valued at $0.02, and they can only be exchanged for gift cards at a limited number of brands, including Starbucks, Sephora, Foot Locker, and Uber. Receiving an extra point per dollar under Klarna Plus would require spending around $400 each month to make up for the $7.99 monthly fee.
Waived service feeAs far as having the service fee waived, Klarna users face a $1 to $2 transaction fee when they make purchases outside of Klarna’s retailer network. This means users would need to transact at these outside retailers anywhere from four to seven times each month to make the monthly fee worth the cost.
Exclusive dealsIt is difficult to place a dollar number on the value of exclusive deals, since people have varying relationships with high-profile brands such as Nike and COACH. That said, this benefit may be the most effective in attracting users. Loyalty program members will receive monthly deals valued at $6 at five selected stores for a maximum benefit of $30 per month.
Sign-up offerFor users who are not brand-forward, the more thrifty shoppers may be drawn in by Klarna’s $8 coupon. It is essentially allowing them to trial their first month for free.
Klarna has built up its shopping marketplace to compete with that of Amazon. The company works with more than half a million retail partners who list goods across a range of categories, including health, clothing, toys, beauty, photography, and more. Klarna counts 150 million shoppers– 40 million of which are U.S. based– who make two million transactions using its platform each day.
Klarna was founded in 2005 and has been transforming itself from strictly a BNPL company into a shopping ecosystem with goods from more than 500,000 retailers across the globe. Last year, the Sweden-based company extended its partnership with Adyen, announcing that it will leverage Adyen’s acquiring capabilities to power card payments for its end users.
Photo by Artem Beliaikin on Unsplash
