Klarna and Zilch launch new paid membership packages

Swedish fintech firm Klarna and UK-based payments company Zilch have unveiled new paid membership packages in an effort to compete with traditional credit card companies and retain customers with added benefits. Klarna has updated its membership offerings, claiming to bring "US-style credit card benefits to Europe." Known primarily as a buy-now-pay-later (BNPL) provider, Klarna is transforming itself into an everyday payment and bank.

With its revamped membership system, Klarna is eliminating fees, offering cashback on all purchases, and adding new perks and subscriptions. Klarna's membership plans range from €4.99 per month for Klarna Everywhere to the premium Klarna Max at €44.99 per month. The Klarna Max membership provides access to 23 subscriptions, including NordVPN and The New York Times, as well as a premium rose gold metal card.

Klarna highlights that their memberships offer flexibility, allowing users to upgrade their plans month-to-month, unlike credit cards that tie customers into a yearly commitment. The new membership plans will begin rolling out across Europe in the coming weeks.

Meanwhile, Zilch, a London-based fintech credit and debit provider with over 5 million customers, is also launching new membership packages for the first time. Zilch Extra, priced at £2.99 per month, offers rewards and open banking income verification services. Zilch Plus, priced at £3.99 per month, provides higher rewards on debit purchases and a free Zilch physical card.

Philip Belamant, CEO and co-founder of Zilch, stated, "We started Zilch to eliminate the high cost of consumer credit. Our new membership tiers are the evolution of that mission, illustrating how Zilch is becoming the smart way to spend, where every purchase is intelligently financed, optimized, and rewarded in real time."