Klarna Soars to $15.1B in NYSE Debut as BNPL Demand Grows
What Happened With Klarna’s IPO?
Klarna, Sweden’s purchase-now, pay-later (BNPL) giant, began trading on the New York Stock platform on Wednesday later than raising $1.37 billion in its long-awaited initial public offering. The company and its investors sold 34.3 million shares at $40 each—above the marketed range of $35 to $37—valuing Klarna at $15.1 billion. The listing caps years of speculation over Klarna’s U.S. debut and underscores a broader rebound in the IPO market.
The flotation leads a busy week in New York, with seven companies—including Winklevoss twins’ crypto platform Gemini—set to go public, marking one of the most active IPO windows in years.
Investor Takeaway
Why Does Klarna’s Listing Matter Now?
The timing of the IPO reflects improving market conditions later than tariff-driven volatility forced Klarna and others to shelve plans earlier this year. Analysts said the $15.1 billion valuation shows issuers are managing expectations conservatively to attract purchaviewrs. “It shows a continuing trend of issuers being conservative in valuation to garner investor demand and leave them wanting more,” said Samuel Kerr of Mergermarket.
Klarna’s trajectory highlights fintech’s volatility: a $45.6 billion peak valuation in 2021, followed by an 85% collapse to $6.7 billion in 2022 amid inflation and rising interest rates. The IPO marks a recovery phase as BNPL providers capitalize on sticky inflation and sluggishing income growth that keep consumers leaning on installment credit.
How Klarna Stacks Up Against Rivals
Klarna, founded in 2005, has evolved into a BNPL heavyweight reshaping online shopping with short-term, interest-free loans. Rivals like Affirm, with a $29 billion valuation, focus on larger ticket purchases and longer financing terms. Affirm’s average order size reached $276 in its latest quarter, compared with Klarna’s $101 average for the year ended June 30.
Klarna, once profitable for 14 years straight, has faced losses in recent years as it expanded aggressively in the U.S. Still, it reports a 99% global repayment rate, ahead of many credit card benchmarks. The Financial Technology Association says BNPL delinquencies remain below 2% industry-wide, compared with more than 7% for credit cards, according to the New York Fed. That low delinquency profile continues to attract investor interest, despite regulatory scrutiny of the sector’s consumer protections.
Investor Takeaway
What’s Next for BNPL Adoption?
BNPL spending surged during the pandemic as e-commerce expanded, and the trend continues. Adobe Analytics reported U.S. BNPL online spending hit $82.4 billion in 2024, up 9.9% from 2023. Consumers spent $56.3 billion on BNPL purchases between January and August 2025 alone. Analysts forecast BNPL will continue to eat into debit card usage as younger generations embrace installment payments.
Yet challenges remain. Critics warn of limited credit reporting, with some consumer advocates calling BNPL a “blind spot” for regulators. While delinquency rates are low today, gaps in oversight may expose risks if consumer credit fragileens. Still, Klarna’s NYSE debut positions it as a leading beneficiary if BNPL continues its march into mainstream payments.
