Klarna, the global payments network and shopping assistant is venturing into subscription-based services, continuing its expansion beyond Buy Now, Pay Later.
The company announced that it has launched Klarna Plus, an in-app subscribed service that allows members to access waived service fees on Klarna’s One Time Card product, double rewards points, and access to special deals with popular brands as well as other new features.
The membership has been made available to eligible US consumers for a monthly fee and comes amid a thriving global subscription e-commerce market, which is projected to reach a valuation of approx. US$2419 billion by 2028. This rise of subscription-based services is being fuelled by evolving consumer shopping preferences and the spread of online retail and mobile shopping, among others.
David Sandstrom, Chief Marketing Officer, Klarna said: “Today marks an exciting milestone for Klarna with the introduction of our first-ever premium subscription service, Klarna Plus.”
He added: “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 US consumers, while also further diversifying a portfolio of payment and shopping solutions.”
What does it offer?
Subscribers to the service will be able to collect two double points for every $1 spent on purchases with Klarna rewards club. They can shop at any retailer outside Klarna’s network to split payments into four interest-free installments using Klarna’s One Time Card, with no added service fees. Additionally, there can access a range of discounts at selected retailers.
The launch of the new model also presents further evidence of a company looking to to evolve beyond Buy Now, Pay Later into a 360-degree shopping and payments ecosystem. Klarna said over the past year its US customer base has expanded by 32%, now reaching 37 million consumers while its AI-powered Klarna App currently boasts over 7 million US-based monthly users.
