Klarna Turns Debit Into Subscription

Klarna is turning debit into a subscription business, which makes its consumer app look less like a checkout add on and more like a lightweight bank. Instead of earning only when a shopper uses BNPL, Klarna can now earn monthly fees, card interchange, and partner economics from travel and lifestyle perks. That matters because BNPL merchant fees fell to 57% of revenue in 2024, down from 75% in 2020, as newer revenue streams grew around the app and card.

• The product shift is concrete. Klarna now sells four membership tiers, and the higher U.S. plans bundle lounge access, travel protection, cashback, and subscriptions with the Klarna Card through WebBank. That turns the card from a way to finance purchases into a paid wallet people keep for everyday spending and perks.
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• The revenue mix shows why this matters. Klarna generated $84M from Klarna Card interchange in 2024, plus subscription revenue from Klarna Pro, alongside $180M from ads and $675M from interest bearing loans. The business is becoming a mix of banking, commerce, and media, not just installment lending.
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• This follows the broader neobank playbook. Consumer fintechs like Chime first scaled on debit interchange, then added lending and other products because card fees alone are not enough to support durable growth. Klarna is taking a similar path, but with a shopping app and merchant rewards network as its distribution advantage.
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The next step is deeper bundling, where Klarna uses memberships to pull more spending, deposits, and shopping activity inside its own loop. If that works, Klarna will rely less on one time checkout fees and more on recurring consumer revenue, which should make the business look more like a scaled consumer finance platform than a pure BNPL provider.