Swedish fintech giant Klarna has introduced a new subscription plan, “Klarna Plus.” Pricing the plan at $7.99 per month, Klarna aims to enhance the shopping experience for its 37 million loyal U.S. users. This move seeks to increase recurring revenue in anticipation of the company’s upcoming initial public offering.
Klarna Plus Benefits
Subscribers to Klarna Plus enjoy a range of perks designed to elevate their shopping journey:
1. No Service Fees with One Time Card:
- Users employing Klarna’s One Time Card, a virtual single-use payment card, can enjoy transactions without incurring service fees.
- This feature is estimated to save loyal Klarna users approximately $12 monthly.
2. Double Rewards Points:
- Members of Klarna’s rewards club earn double points on their purchases.
- These points can be redeemed for exclusive rewards from renowned brands, including Adidas, ASOS, Best Buy, H&M, Nike, and more.
The introduction of Klarna Plus aligns with the company’s broader strategy to diversify its payment portfolio and shopping solutions, providing a stable revenue stream through subscriptions. Klarna’s Chief Marketing Officer, David Sandstrom, highlighted the plan’s appeal to dedicated users seeking an enhanced shopping experience.
IPO Anticipation
Entering the subscription market strategically, Klarna aims to capitalize on the perceived stability and predictability of subscription revenue. Investors highly value subscription revenue as opposed to one-time transactions. The company’s expansion into the U.S. subscription market coincides with its plans for a potential IPO, further reinforcing its commitment to growth and stability.
Klarna’s move follows industry trends, with other players like Affirm considering similar subscription plans. The popularity of buy now, pay later services has surged, offering consumers a fintech-enabled credit alternative.
As Klarna positions itself for an IPO, the introduction of Klarna Plus showcases its dedication to meeting user demands and securing a loyal customer base. The subscription plan not only adds value to the user experience but also strengthens Klarna’s position in the dynamic fintech landscape, setting the stage for further innovations and market expansion.