Klarna, the AI-powered payments and commerce network, has launched its flexible payment methods into the car subscription market thanks to a new agreement with Munich-based car subscription start-up FINN.
Thanks to the agreement, FINN’s German customers can now pay their monthly car subscription fee using Klarna’s innovative “monthly invoice” product, and can use Klarna’s payment methods to settle the final invoice when they return the cars.
“Tailored payment methods are crucial for high-priced goods,” says Maximilian Wühr Co-Founder & CEO of FINN. “Klarna’s seamless integration ensures flexibility and simplicity for our customers—without disrupting our operations.”
FINN, which launched in Germany in 2021, offers consumers a single monthly payment which covers the car, insurance, maintenance and roadside assistance. Car subscription is a booming market and a popular new way to pay for car ownership. Globally, the market is expected to be worth €8.5bn in 2025, and is growing at 33% a year to reach €85bn by 2033.
“At Klarna, we are always looking for ways to help our customers save time, money and worry less about their finances. With this agreement, we’re bringing our flexible and intuitive payment solutions into the fast-growing car subscription market, empowering drivers to manage their payments effortlessly in the Klarna app,” said Nico Schenck, Head of Germany at Klarna. “This partnership underscores our commitment to innovation and making modern mobility accessible to more people.”
Klarna’s tokenized payments product is used by a growing number of global merchants including Uber, Flink, Instacart, Wolt, Voi, Miles, Foodora, Zoom, Adobe, providing consumers with a seamless checkout experience, payment flexibility and enabling them to easily manage their subscription services and transactions from the Klarna app. They can update their payment date, change the funding source and receive 24/7 support from Klarna, who will notify them if a card is about to expire or a payment has failed. For subscription-based merchants, Klarna drives a 47% increase in signup conversion, cuts involuntary churn by 31% and takes on 100% of the credit risk of offering a subscription product.