Core Insights - Klarna is expanding its membership plans, Premium and Max, to the U.S. market, offering an alternative to traditional credit cards [2] - The membership program aims to provide benefits such as airport lounge access, travel insurance, and lifestyle subscriptions without the need for debt accumulation or spending thresholds [2][4] - The launch coincides with a trend where higher-income earners and younger consumers are increasingly favoring buy now, pay later (BNPL) options over credit cards [3][5] Membership Program Details - The U.S. membership program is designed to challenge the notion that expensive credit cards are necessary for premium rewards [4] - Klarna's collaboration with WebBank includes the recently launched Klarna Card, a debit product that offers flexible payment options [4] - The program is positioned to attract consumers who prefer convenience and speed over traditional credit card benefits [7] Consumer Trends - Research indicates that 18% of Generation Z consumers utilize BNPL products, compared to 12% of older consumers, highlighting a shift in financing preferences [5] - Only 55% of Generation Z have credit cards, with average monthly balances of $1,667, which is lower than the $1,959 average for older consumers [6] - The changing landscape suggests that credit building and rewards preferences are evolving, necessitating adjustments in underwriting models [6][7]
Klarna Takes on Credit Cards With US Subscription Plans