Klarna Takes on Credit Cards With US Subscription Plans

Digital bank and payments firm Klarna is expanding its new membership plan to the U.S.

The Sweden-based company introduced its Premium and Max plans in Europe and the U.K. in October and announced in a Thursday (Dec. 4) news release that it is now rolling out those programs for American customers.

“The U.S. debut offers an alternative to the traditional credit card model,” Klarna said in the release. “While credit cards have long provided rewards and benefits, they’ve also contributed to roughly $1,000 in household fees in 2024, with total U.S. credit card debt of $1.2 trillion.”

According to the release, the memberships include benefits such as airport lounge access, travel insurance, and lifestyle subscriptions, without customers needing to accrue debt or reach a spending requirement.

The company noted the launch is happening at a time when higher income earners are favoring buy now, pay later (BNPL) plans over credit cards.

“For too long, Americans have been told they need expensive credit cards to access premium rewards,” Klarna Chief Marketing Officer David Sandström said in the announcement. “Klarna is challenging that idea. With our new membership program, U.S. consumers can unlock exclusive cashback offers, travel advantages, and lifestyle rewards without using a credit card or need to hit a spending threshold.”

The membership program is provided in collaboration with WebBank, the issuer of the recently debuted Klarna Card, a debit product which offers access to built-in flexible payment options.

Klarna’s new offering comes at a time when younger consumers are favoring BNPL, with traditional credit playing a smaller role, as PYMNTS wrote Thursday.

Research by PYMNTS Intelligence shows that 18% of Generation Z consumers use BNPL products alongside other pay-later tools, compared with 12% of older consumers. Only a third of this age group relies solely on credit cards for financing needs. By contrast, 43% of non-Gen Z consumers depend exclusively on credit cards.

“Credit use is not disappearing for Gen Z, but it is sharing space with newer instruments. That shift matters,” the report said, adding that the age gap “in credit card ownership underscores why underwriting models may need to adjust.”

Only 55% of Gen Z consumers have a credit card, with average monthly balances of $1,667, compared to $1,959 held by older consumers.

“This thinner file profile affects credit building and rewards preferences,” the report added. “It signals an ecosystem where choice, convenience and speed matter more than legacy products tied to plastic cards.”