Great news for those of you already experiencing subscription fatigue: you can subscribe to buy now, pay later (BNPL) service Klarna for $7.99 a month.
Technology
Klarna will now let you pay them so you can pay them less money
/cdn.vox-cdn.com/uploads/chorus_asset/file/24511279/STK417_H_Herrera_Money_01.jpg?ssl=1 "Klarna will now let you pay them so you can pay them less money")
At first glance, this seemed pretty fucking weird to me. I mean, the entire point of Klarna is that you can essentially do layaway without paying any kind of interest; Klarna has partnered with a wide array of retailers — from Dolce & Gabbana to 1-800-Flowers.com to Macy’s — to create this service. So what’s the consumer value in the subscription?
The subtext of the announcement is, “Hey look, another revenue stream!”
Well, let’s say you shop at, I dunno, Target or Kroger or Safeway. These retailers aren’t affiliated with Klarna, so if you try to use the service there, you have to pay a transaction fee of up to $2. “The main proposition of Klarna Plus right now is that you don’t pay any service fees,” David Sandstrom, the chief marketing officer of Klarna, told CNBC. “So if you love Klarna and if you love shopping at Target and Walmart, it makes a ton of sense financially.”
I am somewhat less sure about that, but we’ll come back to my doubts in a minute. What I do feel sure of is that this is Klarna attempting to goose its rumored IPO. The subtext of the announcement is, “Hey look, another revenue stream!” After all, Klarna’s valuation dropped to almost $8 billion from about $46 billion last year, which, ouch. As a result, Klarna has become the poster child of overly exuberant investments in fintech, according to no less of an authority than the Financial Times.
At the risk of sounding like a dang broken record: this is, of course, related to interest rates. For most of Klarna’s history — the company launched in 2005 — interest rates have been pretty close to zero. Easy credit was everywhere! But rising interest rates might make more people default on their payments.
Klarna offers several ways to split payments. First, paying in four installments with 25 percent down upfront. Second, paying over the course of 30 days. Third, short-term loans, with an APR of as high as, uhhhh, 33.99 percent.
When Klarna started trying to grow its presence in the US market, it began a long string of quarterly losses
Now, to be clear, part of Klarna’s model is that some people won’t pay on time. That means late fees — $7 per missed payment — and eventually, debt collection. About a quarter of BNPL users in the UK have been charged these fees in the last six months of 2023, and younger consumers were more likely to get stuck with them. Some people also took a hit on their credit score or were contacted by debt collectors.
Part of Klarna’s value proposition is that it doesn’t require a credit check. So if your credit is bad, you can still use it. The problem here, of course, is that if you do pay your loan off on time, your credit score doesn’t improve. But it can be harmed if you miss payments.
I am going to leave aside the question of whether BNPL broadly is bad for society. (There is a strong argument to be made that it is, in fact, good.) I want to focus on Klarna, which was profitable from its founding until 2018, Fortune reported. But when the company started trying to grow its presence in the US market, it began a long string of quarterly losses, starting in 2019, that only ended last year.
So between the new interest rate environment and the new investor focus on profitability, Klarna has some incentives to offer new products that will make its IPO juicy. From an investor’s perspective, the subscription plan means recurring revenue, which is good, and a new revenue stream, which is also good. And in case you were curious about who that press release is really for, Klarna makes sure to note it’s sprinkled some AI on its business.
I wonder whether Klarna Plus is a good deal for consumers
But I wonder whether Klarna Plus is a good deal for consumers. Klarna’s press release says that the subscription will save people… $12 a month on fees.
The press release also says that users will get exclusive deals worth up to $30 a month. I find this somewhat befuddling: if you’re in a financial position where saving $12 a month is important, why would you want to be encouraged to spend more money with “exclusive deals”? Remember, Klarna’s value proposition to the businesses it courts is that it encourages people to spend more money. “Businesses of all sizes grow with Klarna,” its website says. “Turn our high-intent shoppers into loyal customers with performance-driven marketing solutions.” It promises “up to 70% increase in revenue” to businesses that use Klarna to deliver “shoppable content that sells.” Hmm!
The UK survey suggests most Klarna users pay off their debt without incurring fees. For Klarna, the most valuable customers are those who are likely to incur late fees. And the examples marketing officer Sandstrom uses are telling: Walmart, Target, Amazon, Costco. You know, the big box retailers where people buy ordinary staples — which suggests the model targets people who are having difficulty with increases in the cost of living.
If those people are successfully paying off their debt, Klarna gets the subscription fee. I don’t see anything in Klarna’s press release about saving on late fees with Klarna Plus. So if you don’t pay off your loan, you’re paying the subscription fee and the late fees.
Anyway, Klarna’s promising to launch more features soon, such as a high-yield savings account, its marketing officer told CNBC. Given Klarna’s IPO plans, I expect those features will be highly appealing to potential investors. But will they be good for Klarna’s customers?
Continue Reading
Microsoft Edge is adding a new feature that will allow its Copilot AI chatbot to gather information from all of your open tabs. When you start a conversation with Copilot, you can ask the chatbot questions about what’s in your tabs, compare the products you’re looking at, summarize your open articles, and more.
In its announcement, Microsoft says you can “select which experiences you want or leave off the ones you don’t.” The company is retiring Copilot Mode as well, which could similarly draw information from your tabs but offered some agentic features, like the ability to book a reservation on your behalf. Microsoft has since folded these agentic capabilities into its “Browse with Copilot” tool.
Several other AI features are coming to Edge, including an AI-powered “Study and Learn” mode that can turn the article you’re looking at into a study session or interactive quiz. There’s a new tool that turns your tabs into AI-powered podcasts as well, similar to what you’d find on NotebookLM, and an AI writing assistant that will pop up when you start entering text on a webpage.
You can also give Copilot permission to access your browsing history to provide more “relevant, high-quality answers,” according to Microsoft. Copilot in Edge on desktop and mobile will come with “long-term memory” as well, which can tailor its responses based on your previous conversations. And, when you open up a new tab, you’ll see a redesigned page that combines chat, search, and web navigation, along with the Journeys feature, which uses AI to organize your browsing history into categories that you can revisit.
Meanwhile, an update to Edge’s mobile app will allow you to share your screen with Copilot and talk through the questions about what you’re seeing. Microsoft says you’ll see “clear visual cues” when Copilot is active, “so you know when it’s taking an action, helping, listening, or viewing.”
NEWYou can now listen to Fox News articles!
If you bought a newer iPhone because Apple made Siri sound like it was about to become your personal artificial intelligence sidekick, you may want to pay attention.
Apple has agreed to pay $250 million to settle a class-action lawsuit over claims that it misled customers about new Apple Intelligence and Siri features. The case centers on the iPhone 16 launch and certain iPhone 15 models that were marketed as ready for Apple’s next wave of AI. The settlement still needs court approval, and Apple denies wrongdoing.
The lawsuit argues that Apple promoted a smarter, more personal Siri before those features were actually available. For some buyers, that was a big deal. A new iPhone can cost hundreds of dollars, and many people upgrade only when they think they are getting something meaningfully new.
Sign up for my FREE CyberGuy Report
- Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox.
- For simple, real-world ways to spot scams early and stay protected, visit CyberGuy.com – trusted by millions who watch CyberGuy on TV daily.
- Plus, you’ll get instant access to my Ultimate Scam Survival Guide free when you join.
WHY IPHONE USERS ARE THE NEW PRIME SCAM TARGETS
U.S. buyers of certain iPhone 16 and iPhone 15 Pro models may qualify for payments if a judge approves Apple’s proposed settlement. (Getty Images)
What Apple is accused of promising
Apple introduced Apple Intelligence in June 2024 and promoted it as a major step forward for iPhone, iPad and Mac. A key part of that pitch was a more personalized Siri that could understand context, work across apps and help with everyday tasks in a more useful way.
The lawsuit claims Apple’s marketing made consumers believe those advanced Siri features would arrive with the iPhone 16 or soon after. Instead, buyers received phones that had some Apple Intelligence tools, but not the full Siri overhaul that many expected.
That gap is the heart of the case. Plaintiffs say customers bought or upgraded devices based on AI features that were not ready. Apple says it has rolled out many Apple Intelligence features and settled the case, so it can stay focused on its products.
How much money could iPhone owners get?
The proposed settlement creates a $250 million fund. Eligible customers who file approved claims are expected to receive at least $25 per eligible device. That amount could rise to as much as $95 per device, depending on how many people file claims and other settlement factors.
That means this will not be a huge payday for most people. Still, if you bought one of the covered phones, it may be worth watching for a claim notice. A few minutes of paperwork could put some money back in your pocket.
Which iPhones may qualify?
The proposed settlement covers U.S. buyers who purchased any iPhone 16 model, iPhone 15 Pro or iPhone 15 Pro Max between June 10, 2024, and March 29, 2025.
Covered iPhone 16 models include the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max and iPhone 16e. The settlement also includes the iPhone 15 Pro and iPhone 15 Pro Max, but not every iPhone 15 model.
The key details are the device model, the purchase date and whether the phone was bought in the United States.
HOW YOU CAN GET A SLICE OF APPLE’S $250M IPHONE SETTLEMENT
Apple has agreed to pay $250 million to settle claims it misled customers about Apple Intelligence and Siri features on newer iPhones. (Michael Nagle/Bloomberg)
How will you file a claim?
You do not need to do anything immediately. The settlement still needs a judge’s approval. Once the claims process opens, eligible customers are expected to receive a notice by email or mail with instructions on how to file through a settlement website.
That notice matters because scammers love moments like this. A real settlement notice should not ask for your Apple ID password, bank login or payment to claim your money. If you receive a message about this settlement, do not click blindly. Go slowly, check the sender and look for the official settlement administrator details once they are available.
Why this case matters beyond one Siri feature
This case hits a bigger nerve. Tech companies are racing to sell AI as the next must-have feature. That creates a problem for shoppers. You are often asked to buy now based on what a company says will arrive later.
That can be frustrating when the feature is the reason you upgraded. A smarter Siri sounds useful. A phone that can understand your personal context, search across apps and help with daily tasks could save time. But if those tools are delayed, limited or missing, the value of the upgrade changes.
This settlement also sends a message about AI marketing. Companies can talk about future features, but consumers need clear timing and plain explanations. “Coming soon” can mean very different things when you are spending $800, $1,000 or more.
We reached out to Apple for comment, but did not hear back before our deadline.
FIRST 15 THINGS TO DO OR TRY FIRST WHEN YOU GET A NEW IPHONE
Apple denies wrongdoing but agreed to settle claims tied to its marketing of Apple Intelligence and Siri features. (Qilai Shen/Bloomberg)
What this means to you
If you bought a covered iPhone during the settlement period, keep an eye on your email and regular mail. You may qualify for a payment if the court approves the deal.
You should also keep your receipt or proof of purchase if you have it. Your Apple purchase history, carrier account or retailer receipt may help if the claim process asks for details.
More broadly, this is a reminder to treat AI features like any other big tech promise. Before you upgrade, ask one simple question: Can the feature do what is being advertised today, or is the company asking me to wait?
That question can save you from buying a device for a future feature that may arrive much later than expected.
Take my quiz: How safe is your online security?
Think your devices and data are truly protected? Take this quick quiz to see where your digital habits stand. From passwords to Wi-Fi settings, you’ll get a personalized breakdown of what you’re doing right and what needs improvement. Take my quiz here: CyberGuy.com.
Kurt’s key takeaways
Apple has built its brand on making technology feel polished, personal and easy to use. That is why this Siri settlement hits a nerve. People were buying phones they use every day for texts, photos, directions, reminders and everything in between. Many expected AI to make those everyday tasks easier, which is why the delay felt frustrating. The proposed payout may be modest, but the bigger issue is trust. When a company sells AI as a reason to upgrade, customers deserve to know what actually works now and what is still coming later.
Would you still buy a new phone for promised AI features, or would you wait until they actually show up? Let us know by writing to us at CyberGuy.com.
Sign up for my FREE CyberGuy Report
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
- Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox.
- For simple, real-world ways to spot scams early and stay protected, visit CyberGuy.com – trusted by millions who watch CyberGuy on TV daily.
- Plus, you’ll get instant access to my Ultimate Scam Survival Guide free when you join.
Copyright 2026 CyberGuy.com. All rights reserved.
Instagram is once again cribbing from competitors like Snapchat and BeReal with a new photo-sharing format it calls “Instants,” which are ephemeral photos that you can’t edit and that you can only share with your close friends or followers that follow you back. Instants are available globally beginning on Wednesday as a feature in the inbox in the Instagram app and as a separate app that’s now in testing in select countries.
To access Instants from the Instagram app, go to your DM inbox and look in the bottom-right corner for an icon or a stack of photos. After you post a photo, your friends can emoji react to it and send a reply to your DMs, but after they see it, the photo disappears for them. Instants also disappear after 24 hours, and they can’t be captured in screenshots or screen recordings.
However, your Instants will remain in an archive for you for up to a year, and you can reshare them as a recap to your Instagram Stories if you’d like. You can also undo sending an Instant right after you post it or delete it from your archive.
The Instants mobile app, which popped up in Italy and Spain in April, gives you “immediate access to the camera” and only requires an Instagram account, Instagram says. “Instants you share on the separate app will show up for friends on Instagram and vice versa. We’re trying this separate app out to see how our community uses it, and we’ll continue to evolve it as we learn more.”
Instagram, in its testing, has seen that people “tend to use Instants to share much more casual, much more authentic moments about their day,” according to Instagram boss Adam Mosseri. “And we know that this type of sharing of personal moments with friends is a core part of what makes Instagram Instagram, but we also know that a lot of people don’t really share a lot to their profile grids anymore.”
-
Georgia1 minute agoGeorgia Power proposal comes as summer cooling costs are expected to rise
-
Hawaii7 minutes agoTourist accused of hurling rock at endangered Hawaii monk seal’s head is arrested by federal agents
-
Idaho13 minutes agoIdaho silversmiths craft wearable works of art inspired by the West
-
Illinois19 minutes agoHost of new Illinois laws would target various parts of the AI industry
-
Indiana25 minutes agoIndiana A.G. finishes Karl King Tower investigation, finalizes compliance order
-
Iowa31 minutes ago
Democrats will debate in Iowa US Senate primary shaped by outside money and big-name endorsements
-
Kansas37 minutes agoKHP says 135 spill was human waste
-
Kentucky43 minutes agoWhich Kentucky Derby horses are running in the 2026 Preakness Stakes?
