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Buy now, pay later platforms now offer subscriptions

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Some buy now, pay later platforms are testing out a new model: subscription plans.

For $5.99 a month, Afterpay Plus users get a digital card they can use in stores. And Klarna just rolled out a subscription of its own: $7.99 a month lets users dodge service fees, rack up loyalty points faster and access special deals.

For these companies, it’s another guaranteed revenue stream and maybe a way to lock in loyal customers. But can they work when paying later is the whole point?

“Um, it’s a little counterintuitive” said Sheridan Trent, with the payment analytics firm The Strawhecker Group.

If subscriptions to these platforms appeal to you, “you’re someone who’s probably using buy now, pay later multiple times a month,” Trent said.

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