Klarna's Debit-First Membership Strategy

Klarna is trying to turn one time BNPL users into recurring retail banking customers. The important shift is from making money mainly when a shopper takes an installment loan, to making money every month through subscriptions and every day through debit spend. The Klarna Card plus paid tiers gives Klarna a way to collect membership fees, earn interchange on card usage, and keep users inside its app even when they are not financing a purchase.1 2 3 4

• The model is concrete. A U.S. customer signs up for a Klarna debit card issued with WebBank, can keep money in Klarna balance, and then add a paid tier on top. Premium costs $19.99 per month and Max costs $44.99, with perks like lounge access, travel protection, subscriptions, and 1.5% to 2% cashback when spending from Klarna balance.1 4
• This broadens Klarna beyond classic BNPL economics. By 2024, Klarna had already diversified into subscriptions, card interchange, ads, late fees, and interest bearing loans, with card interchange at $84M and merchant fees down to 57% of revenue from 75% in 2020. The membership push adds another recurring layer on top of that mix.2 3
• The contrast with Afterpay is distribution. Block is folding Afterpay into Cash App and letting eligible users turn Cash App Card purchases into pay over time purchases through a Visa debit flex card. Klarna is packaging debit, rewards, and lifestyle benefits as a branded bank relationship, while Afterpay is being absorbed into a broader consumer wallet.5 6 7

The next phase is a fight over who owns everyday consumer spend in the U.S. If Klarna can make debit and membership habit forming, it can rely less on commodity checkout lending and compete more directly with PayPal, Cash App, and neobanks for primary wallet share.2 3 5