Klarna Prices IPO at $40 Valuing Company at $15 Billion

Klarna has priced its initial public offering (IPO) at $40 per share, higher than its expected $35-$37 range.

As Seeking Alpha noted in a report Wednesday (Sept. 10) morning, this price range values the Swedish FinTech at $15.1 billion, still far short of its $45 billion peak in 2021.

A separate report by Reuters, citing two sources familiar with the matter, said the company raised $1.37 billion in its IPO.

“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,” PYMNTS wrote late Tuesday. “As of last week, the index was up 118% year to date.”

This surge, that report added, spotlights more than just a success story for buy now, pay later (BNPL) industry, but rather “signal[s] a firm shift toward paying over time.”

Klarna has pointed out that its customers skew younger and the average balances are lower than those carried on traditional credit cards: $80 per consumer, compared to $6,730 for U.S. credit cards last year. Klarna’s loan duration averages 40 days.

As PYMNTS wrote, the company still faces challenges. Its securities filing showed losses in the second quarter of 2025, ($52 million on $823 million revenue) with operating losses. It has seen its advertising revenue grow, though it’s not become a profit engine.

And the regulatory environment around the BNPL space could hinder growth or require expensive investments in compliance.

“Still, for FinTechs awaiting their turn to go public, these headwinds may seem manageable given today’s enthusiasm,” PYMNTS wrote. “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.”

Meanwhile, recent PYMNTS Intelligence research finds that while pay later adoption is still expanding, the faster growth is happening within card networks.

“Store-branded cards, once dismissed as relics of department-store shopping, are drawing in middle-income households and young consumers like Generation Z, while general-purpose card issuers are pushing installment conversions to hold onto high-value customers,” PYMNTS wrote Wednesday (Sept. 10).

Research from the report “Split Shift: How Card Installments Are Reshaping the Pay Later Landscape” found that installment use on store cards increased at a compound annual rate of 4.8% between 2023 and 2025, versus just 0.8% for general-purpose card installments.