Buy Now, Trade Later: Klarna’s IPO Explained

Markets move fast, but FinTech IPOs move faster.

Tuesday night (Sept. 9), the investing world anxiously waited ahead of a listing slated for Wednesday, and Klarna may set the stage for FinTechs to come knocking on the public market’s door.

As reported by Reuters, investor demand for Klarna’s initial public offering (IPO) was and is robust, with the company signaling it would price at or above the top of its marketed $35-$37 range. This strong reception, as the pricing indeed topped the range and came in late Tuesday at $40 a share, equates to a $15 billion valuation.

The market debut comes as we are within sight of the end of the third quarter, and strong year-to-date performance for our FinTech IPO Index. As of last week, the index was up 118% year to date.

Behind the surge is a recognition that Klarna’s F-1 metrics, as recently reported by PYMNTS, underscore more than a success story for buy now, pay later (BNPL). These figures signal a firm shift toward paying over time. The company has noted that its customers skew younger and the average balances are lower than those carried on traditional credit cards. Klarna reported an average balance per consumer of $80, compared to $6,730 for U.S. credit cards in 2024. Klarna’s loan duration averages 40 days.

Klarna sees a $520 billion payments revenue opportunity, driven by $19 trillion of global consumer spending.

In the 12 months ended June 30, gross merchandise value reached $112 billion, up 13% year over year.

The company serves 111 million active consumers and 790,000 merchants across 26 countries.

BNPL’s integration into everyday commerce, now spanning banking, advertising and retail enablement, seems more mainstream than niche.

The groundwork has been laid for an enthusiastic reception, though volatility will likely be hallmark of the trading of Klarna’s shares. Following stalled listings, a wave of offerings, including Circle, Figma and Bullish, has revived the broader IPO market. Klarna’s oversubscription and premium pricing could further elevate confidence, especially for peers on the PYMNTS FinTech IPO Index.

But inventing the future doesn’t come without challenges. Klarna’s F-1 showed losses in Q2 of 2025, ($52 million on $823 million revenue) with operating losses. After scaling fast, maintaining profitability while expanding into digital banking functions will test Klarna’s resilience. Its growing advertising business, $184 million in the most recent reporting vs. $13 million in 2020, is a bright spot, but not yet a profit engine. The evolving regulatory environment for consumer financial products, particularly BNPL, could also curb growth or require costly compliance investments.

Still, for FinTechs awaiting their turn to go public, these headwinds may seem manageable given today’s enthusiasm. If Klarna’s IPO sustains traction post-opening, it could indeed give rise to a wave that lifts many boats, and valuations, across the sector.