visimoney
TLDR:
Swedish fintech firm Klarna is launching a monthly subscription plan in the U.S. called Klarna Plus, ahead of its expected IPO this year. The plan will cost $7.99 per month and offers users benefits such as waived service fees, double rewards points, and curated discounts from partner retailers. Klarna plans to expand its offerings to boost recurring revenue and attract investors. The company is also considering rolling out a high-yield savings account for its customers.
Swedish fintech firm Klarna is introducing a monthly subscription plan in the U.S., named Klarna Plus, to secure its most loyal users before its upcoming initial public offering (IPO) this year. The subscription plan will be priced at $7.99 per month, offering benefits such as waived service fees, double rewards points, and access to exclusive discounts from partner retailers like Nike and Instacart. The plan aims to attract customers who frequently use Klarna’s services and shop at major retailers outside of its network. Currently, when Klarna users shop at places like Walmart, Target, Amazon, and Costco, they pay transaction fees of $1 to $2. The new plan seeks to remove these service fees and incentivize Klarna users to continue shopping with the company.
The introduction of the subscription plan is part of Klarna’s strategy to expand its offerings and generate steady, recurring revenue, a feature that Wall Street investors value. Klarna’s rival, Affirm, is also exploring the option of launching its own subscription plan. The implementation of a monthly subscription plan is timely as Klarna approaches its IPO, which is rumored to value the company at more than $15 billion. Klarna CEO Sebastian Siemiatkowski stated that a listing in the U.S., the company’s largest market, is likely imminent.
Klarna Plus is seen as a revenue stream diversification strategy for Klarna, as it aims to prove that it can grow beyond its core “buy now, pay later” product. The company piloted the subscription plan in Ohio for six months in 2023, and it proved successful for around 15% of Klarna’s heaviest users. Klarna currently has approximately 37 million customers in the U.S. To further expand its offerings, Klarna plans to launch a high-yield savings account, which would likely offer a higher interest rate to Klarna Plus subscribers. The company believes that adding new revenue streams is crucial for its long-term growth and investor appeal.
Key Takeaways:
- Klarna is launching a monthly subscription plan, Klarna Plus, in the U.S. to attract and retain its most loyal customers.
- The plan costs $7.99 per month and offers benefits like waived service fees, double rewards points, and curated discounts from retail partners.
- The subscription plan is part of Klarna’s strategy to diversify its revenue sources and attract investors ahead of its IPO.
- Klarna plans to introduce a high-yield savings account and offer a higher interest rate to Klarna Plus subscribers.
