Discover the benefits and potential drawbacks of Klarna’s latest offering

  • Klarna is offering a new monthly subscription for $7.99
  • The subscription eliminates service fees
  • Subscribers get double rewards points and discounts on purchases
  • Service fees are charged when using Klarna’s ‘One Time Card’
  • Klarna Plus subscription can save users around $12 a month
  • Buy-now, pay-later products may include fees and interest charges
  • Klarna charges late fees and offers longer-term loans with interest
  • Consumer protections for BNPL services are not as strong as credit cards
  • Consumer Financial Protection Bureau is looking into extending credit-card regulations to BNPL companies
  • Klarna’s APR does not exceed 21.90%
  • Klarna’s subscription launch is part of its IPO plans

Klarna, the buy-now, pay-later provider, has introduced a new monthly subscription called Klarna Plus. For $7.99, subscribers can enjoy the main benefit of eliminating service fees. In addition, they receive double rewards points and discounts on purchases with partner brands. Service fees are typically charged when using Klarna’s ‘One Time Card’ for purchases at retailers that don’t offer Klarna payment. However, users of Klarna’s popular ‘Pay in 4’ product are exempt from these fees. With the Klarna Plus subscription, users who make at least six ‘One Time Card’ purchases per month can save around $12. It’s important to note that buy-now, pay-later products may include fees and interest charges, and Klarna is no exception. Late fees and interest are applicable in certain cases. Consumer protections for BNPL services are not as robust as those for credit cards, but the Consumer Financial Protection Bureau is exploring the possibility of extending credit-card regulations to BNPL companies. Klarna’s APR does not exceed 21.90%, which is in line with the average APR for credit-card accounts. The launch of Klarna Plus is part of the company’s efforts to generate new revenue streams ahead of its planned IPO.

Public Companies: Klarna (null), Target (null), Walmart (null), Netflix (null), T-Mobile (null), Verizon (null)
Private Companies:
Key People: David Sandstrom (Chief Marketing Officer), Adam Rust (Director of Financial Services at the Consumer Federation of America)

Factuality Level: 7
Justification: The article provides information about Klarna’s new monthly subscription, including its benefits and the fees associated with Klarna’s services. It also mentions consumer advocates’ concerns about buy-now, pay-later products and the lack of protections for consumers. The information provided seems to be accurate and objective, without any obvious bias or misleading information. However, the article could have provided more context about Klarna’s overall business model and the potential risks associated with using buy-now, pay-later services.

Noise Level: 3
Justification: The article provides information about Klarna’s new monthly subscription and its benefits, as well as the service fees associated with Klarna’s payment options. It also mentions consumer advocates’ concerns about buy-now, pay-later products and the lack of protections compared to credit cards. However, the article contains some repetitive information and does not provide a thorough analysis of long-term trends or antifragility.

Financial Relevance: Yes
Financial Markets Impacted: Klarna, Target, Walmart

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses a new subscription offering by Klarna, a major buy-now, pay-later provider. While it pertains to financial topics and mentions specific companies, there is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com