Klarna Card Adds 270,000 Cardholders Monthly 🤯
Plus Upgrade's Boost Money launch, Upstart's $1B FF agreement, and more.
Hey Toaster Readers,
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Klarna reached 5 million active card users after adding 1.9 million in Q4 2025 alone. While the card now accounts for 15% of total transactions, LendingTree reports BNPL delinquencies hit 41% as grocery usage climbed to 25% of borrowers. Upgrade launched Boost Money with a 10% APY and interest-free cash advances to undercut the 24% average credit card APR. Meanwhile, Visa and Mastercard swipe fees reached a record $198.25 billion in 2025 as Upstart secured a $1 billion loan purchase agreement with Eltura Capital and Aperture Investors.
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Klarna Card Pacing 270,000 New Cardholders Per Month
Klarna reached 5 million active Klarna Card customers globally, representing a substantial user base expansion from 800,000 in 2021. The global digital bank and payments provider offers a card that draws from a user’s own funds for everyday spending with the option to spread costs for specific purchases. Recent data shows a rapid acceleration in adoption with 1.9 million new users joining in Q4 2025 alone.
The Klarna membership program reinforces this growth by bundling travel insurance and airport lounge access without requiring debt or minimum spending thresholds. This model separates rewards from revolving credit balances. Chief Marketing Officer David Sandström stated, “They’re voting with their wallets and looking for the control and flexibility in a single card.”
The card is now active in 16 countries and serves as a primary entry point for the Klarna suite of banking services. In the US market, 25% of transaction volume now occurs at physical in-store locations rather than online. Data from the German market indicates high engagement, with cardholders averaging 100 more annual purchases than non-card users.(Klarna)
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Upgrade Launches Boost Money Offering 10% APY and Interest-Free Cash Advances
Upgrade launched Boost Money, a mobile banking product featuring a 10% APY on savings balances up to $1,000 for subscribers. The service provides interest-free cash advances up to $500 with a 0% APR and repayment terms up to 34 days.
Users can access a free tier including a credit-builder card or pay a $9.99 monthly subscription for the premium interest rate. Upgrade reports all payment activity to TransUnion, Experian, and Equifax. The Boost Money Spend account has no overdraft or maintenance fees and includes early paycheck access.
Premium membership includes identity theft protection and travel insurance. Since 2017, Upgrade has delivered $45 billion in credit to 7.5 million customers. The product launch targets the gap between current inflation rates and the 24% average APR typically charged for credit card cash advances. (Upgrade)
Merchants Payments Coalition Reports Record $198.25 Billion in Swipe Fees as Congress Weighs Reform
Merchants Payments Coalition reports that credit and debit card swipe fees reached a record $198.25 billion in 2025. This 5.9% annual increase represents an 80% jump since the pandemic for the group representing retailers and gas stations. Visa and Mastercard centrally set rates for over 80% of the market, with their credit card fees alone totaling $118.8 billion. The average swipe fee for these brands rose to 2.36% per transaction, up from 2.02% in 2010. Congress is currently weighing the Credit Card Competition Act to mandate that banks with over $100 billion in assets enable unaffiliated networks like Star or NYCE. This bipartisan legislation seeks to end the practice of restricting processing to the two dominant networks. Projections suggest the shift could save merchants and consumers over $17 billion annually. Current fees add an estimated $1,200 in yearly costs for the average family. (Merchants Payments Coalition)
Are Credit Card Balances At A Record High Or Flat Over The Last 10 Years?
In the latest episode of The Free Toaster, Carlos and Nick sit down with Kelvin Chen (Consumer Bankers Association) to discuss the “record high” narrative. Discover what average card balances look like when you control for new cardholders and inflation.
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LendingTree Survey: BNPL Delinquencies Hit 41% as Grocery Usage Climbs
LendingTree reports that 41% of buy now, pay later users missed a payment in the past year, marking a significant increase from 34% in the previous period. The survey data reveals that 25% of borrowers now use these loans to purchase groceries, a sharp rise from 14% just one year ago. While one-third of users rely on these installments as a bridge to their next paycheck, 62% incorrectly believe that on-time payments will improve their credit scores. PayPal, Klarna, and Affirm remain the most utilized platforms in a market where 88% of users who requested a late fee waiver were successful. (LendingTree)
Upstart Secures $1B Loan Purchase Agreement with Eltura Capital and Aperture Investors
Upstart secured a $1 billion forward-flow agreement with Eltura Capital Management and Aperture Investors to purchase consumer loans over the next 12 months. The AI-powered lending marketplace connects consumers to more than 100 banks and credit unions to provide personal loans, automotive financing, and home equity lines of credit. The deal represents the first substantial arrangement of this scale between Upstart and this specific investor group. Upstart currently automates more than 90% of its loan originations without human intervention. Aperture Investors brings a portfolio of approximately $5.8 billion in assets under management to the partnership. This commitment aims to provide a robust and diverse funding ecosystem for the platform's credit products. The arrangement builds on an existing relationship to source and service consumer debt through Upstart’s cloud applications. (Upstart)
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Other News We’re Reading
(BNPL) 56% Of Gen Z Struggle To Track When Installment Payments Are Due (PYMNTS)
(Travel) Capital One Launches Capital One Travel App (Capital One)
(Lending) Algebrik AI Announces Strategic Bureau Integration With TransUnion To Power Smarter, More Inclusive Lending (PR Newswire)
(BNPL) Equipifi And CUSG Announce Strategic Partnership To Bring BNPL Capabilities To Credit Unions Nationwide (PR Newswire)
(Cards) Academy Sports + Outdoors And Bread Financial® Launch New myAcademy® Rewards Credit Card And Enhanced Loyalty Program (Bread Financial)
(Banking) Austin Telco Federal Credit Union Partners With MANTL To Modernize Retail Account Opening Across All Banking Channels (PR Newswire)
(AI) Meet Mastercard’s New Generative AI Model (Mastercard)
(Payments) Globant And Adyen Establish Global Partnership To Accelerate Merchant Payment Integrations And Time To Revenue (Globant)
(Payments) EWS Pairs With Citi To Offer Paze (Payments Dive)
(Banking) MoCaFi Files For Bankruptcy (Banking Dive)
(Payments) Introducing The Machine Payments Protocol (Stripe)
(Commerce) Visa Launches ‘Agentic Ready’ Programme To Advance Agentic Commerce In Europe (Visa)
(Rewards) Citi ThankYou Devalues Hotel Points Transfers (Choice Privileges & I Prefer) (One Mile at a Time)
(Wealth) JPMorganChase Partners With Sports Legends To Help Athletes Master Their Money (JPMorganChase)
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The Free Toaster Team
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