Klarna’s NYSE Debut: From BNPL Pioneer to Digital Banking Powerhouse

Historic Market Debut

Klarna has made a remarkable stock market debut, with its shares surging 16% on the first day of trading. This success comes amid a strong year for public offerings, with 144 companies valued at over $50 million going public, representing a 53% increase compared to 2024.

The Swedish fintech company priced its IPO at a higher-than-expected $40 per share, achieving a $15 billion valuation. The company is positioning itself to compete directly with traditional retail banks like JPMorgan Chase and Bank of America.

Financial Performance and Growth

Klarna has demonstrated strong financial performance, reporting revenue of $823 million in the second quarter of 2025, marking its fifth consecutive profitable quarter. The company achieved an adjusted operating income of $29 million, showing significant improvement from the previous quarter.

The company’s reach has expanded considerably, now serving 111 million active consumers worldwide and maintaining partnerships with 790,000 merchant partners. Over the past year, Klarna has added 202,000 new partners, strengthening its position in global commerce.

Evolution Beyond BNPL

While Klarna has become synonymous with the buy now, pay later (BNPL) model, offering interest-free installment payments, the company is actively repositioning itself as more than a one-trick pony. The Swedish fintech has been working to convince the market that it should be viewed as a comprehensive digital retail bank rather than simply a BNPL provider.

Market Outlook and Challenges

The company faces a different market environment in 2025 compared to the heyday of low-fee fintech services. Investors are showing increased caution toward products offering short-term plans with 0% interest, particularly in the current climate of elevated interest rates.

However, Klarna has shown impressive performance in risk management, with the latest quarter marking improved consumer payment behavior. The company achieved a record number of on-time or early payments, while maintaining low credit provisions at 0.56% of gross merchandise volume. Realized losses have decreased to 0.45%, down from 0.48% in the previous year.