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What justifies the huge subscription price increase?
Today I received an email from 1Password with the message of a price increase.
Current price: €31.80 EUR / year New price: €43.80 EUR / year
This is an enormous price. Can someone from 1Password...
Hey everyone! We hear the concerns about AI, especially when it comes to privacy and security. That’s completely fair. We want to clarify and be very transparent about how this specific feature actually works.
We use AI internally to help create and maintain a reference list of common websites, things like primary URLs, login URLs, and human-readable names. This work happens entirely on our own systems, not on your device. That information is compiled into a static database. When you create a new login item in the browser extension, 1Password simply checks that database and applies the appropriate readable name. For example, it might label a login “American Airlines” instead of “aa.com” or “AA.” That’s what the AI-powered item naming feature (launched in 2024) actually is, essentially a smart lookup table that makes saved items clearer and easier to find.
Importantly, this doesn’t access or analyze your vault, your data stays end-to-end encrypted, nothing from your vault is sent to any AI systems, and no external AI services or large language models are involved.
We know AI raises important questions, especially when it comes to security and privacy. Our approach is intentionally limited and privacy-respecting, designed to improve usability without ever touching your vault data.
Recently I received an email advising that my family plan was increasing from $59.88USD/year to $$71.88/year. This is an increase of roughly 20%, and it's not clear if it's inclusive of VAT/GST chargeable in certain jurisdictions.
20% seems a bit steep for a single year increase. As a Canadian company, I'd hope this isn't you passing on the price of US tariffs to your international, non US customers to soften the price increase for US customers. I note that you advise prices have remained largely unchanged for years, but 20% seems like a particularly large jump, especially when one notes currency conversion on top of that.
If this is due to the fact prices haven't changed in several years, do you have plans to stabilise on this +20% increase following March 27th, 2026 ... or is the plan to have yearly increases on top of the 20% ongoing?
