Klarna Blends Credit Card Perks with BNPL Flexibility in New Membership Program

Klarna recently started new membership programs that provide perks for a price. They’re available in Europe, and they should soon be available in the U.S. The new programs are a combination of a membership plan and a credit card.

The highest tier, the ‘Max’ plan, costs $628 per year, with the monthly cost standing at $52.39. On the other hand, the ‘Premium’ plan costs an annual fee of $251, which costs $20.94 monthly.

The Max plan includes an exclusive 16-gram rose gold metal card and comes with LoungeKey Pass for unlimited access to airport lounges. Subscribers also get:

• Fitness and media subscriptions
• Travel insurance for trips, rental cars, and cancellations 
• Cash back convertible into loyalty points
• You can use the points with airlines and hotels
• Klarna puts the annual value at $5,822
• You can pay over time

You can get pretty much the same goodies from premium credit cards, but they charge annual fees. Klarna is taking a new path with its monthly fee and a debit-style card. It’s a way to bring people into its app. Users get rewards for spending. Klarna allows you to track your spending and pause your payments.

The new tiers flesh out the existing portfolio. These include:

• Core: free
• Member: $3.49 monthly
• Plus: $7.99 monthly

The new plans will attract higher-end customers. These are consumers who want good features but no debt.

The timing matters. Shoppers plan to spend near-record amounts this holiday season. Consumers are expected to spend about $890.49 each on gifts, food, and decorations. Many shoppers will buy early and online. This gives Klarna a big chance to win new users.

Surveys indicate that many people will use BNPL this year. Young shoppers lead the way. BNPL also helps stores boost sales — it makes customers more likely to complete a purchase. That makes BNPL a key player in the holiday spending boom.

Not everyone finds it easy to keep up with payments. Firms have added small late fees and tools to help customers manage their budgets. Klarna says missed payments are falling. It now promotes better financial habits through its app.

Clearly, the new perks are similar to those you are likely to get from premium cards. That could sway prime-credit customers who want rewards but who want to avoid revolving debt. The new setup appeals first and foremost to consumers with strong credit. These customers usually qualify for top-tier cards. But they want more flexible options. 

As PaymentsJournal puts it: “This marks another step in Klarna’s evolution toward becoming a full-scale financial services company. Like many of its fintech competitors, the company aims to be the go-to super app for consumers.”