Klarna IPO - how to trade Klarna shares

Create an account Open a demo account

When is the Klarna IPO?

Klarna completed its public listing on the New York Stock Exchange (NYSE) on 10 September 2025 under the ticker symbol 'KLAR', raising $1.37bn through its initial public offering (IPO).

The offering consisted of 34.3m ordinary shares priced at $40 each, above the initially expected range of $35 to $37. Klarna itself offered 5.56m shares, while the remaining 28.8m shares were sold by existing shareholders.

This IPO valued the Swedish fintech firm at $15.1bn, a significant drop from its $45.6bn peak valuation in 2021. The share sale was led by Goldman Sachs, JP Morgan and Morgan Stanley.

The company had delayed earlier listing plans following geopolitical and regulatory uncertainty but completed what became one of the largest fintech listings of 2025.

Klarna filed a draft registration with the SEC in November 2024 and released its S-1 filing detailing financials and IPO terms. The shares began trading on 10 September 2025, opening at $52 and closing the first day at $45.82, representing a 15% gain from the IPO price.

Klarna's listing was influenced by improving market sentiment, fintech valuations, and regulatory developments. Traders may also consider fintech stocks like PayPal or Block for sector exposure.

What is Klarna?

Klarna is a Swedish financial technology company that provides buy now, pay later (BNPL) services, online payments, and AI-driven financial solutions. Founded in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, Klarna has partnered with over 790,000 merchants, operating in 26 countries, and serves 111m active consumers.

Klarna’s history begins in 2005 in Stockholm, with Siemiatkowski, Niklas Adalberth, and Victor Jacobsson joining forces with a mission to simplify online payments. The company started by offering invoice-based payments, allowing shoppers to receive goods first and pay later.

Key milestones in Klarna’s history

• 2005 – founded in Sweden, introducing BNPL as an alternative to traditional credit.
   

• 2010 – expanded across Europe, acquiring Sofort to strengthen its payment solutions.
   

• 2015 – entered the US market, targeting e-commerce growth.
   

• 2020 – surpassed 60m users globally, riding the pandemic-driven boom in online shopping.
   

• 2021 – reached a $45.6bn valuation, making it one of Europe’s most valuable fintech firms.
   

• 2022 – valuation dropped to $6.7bn amid rising interest rates and economic uncertainty.
   

• 2024 – focused on profitability and an IPO preparation, with renewed investor confidence.
   

• 2025 – completed IPO on the NYSE under the ticker 'KLAR' on 10 September, offering 34.3m shares priced at $40. Final valuation of $15.1bn.

By 2025, Klarna operates in 26 countries, serving 111m active consumers. A strengthened Stripe partnership has boosted merchant adoption, while AI now handles two-thirds of customer enquiries. Klarna has also committed to 100% green electricity and successfully completed its US IPO, reinforcing its position as a leading fintech innovator.

How does Klarna make money?

Klarna makes money as a BNPL and payments provider, offering interest-free instalments and credit options for online and in-store purchases. Its merchant-funded model allows retailers to increase conversions while customers enjoy flexible payment options.

Here’s more on Klarna’s revenue streams.

What might influence Klarna’s live stock price?

Klarna's share price will depend on investor appetite for fintech stocks, interest rate trends, and Klarna's profitability trajectory. Following its September 2025 IPO at $40 per share, analysts are monitoring whether its BNPL-heavy model can justify sustained market pricing.

Klarna's stock price – now that the company is public – could be influenced by various factors, including financial performance, competitive pressures, regulatory developments, and macroeconomic conditions.

Earnings, growth and profitability

Klarna reported Q2 2025 revenue of $823m, up 20% year-on-year, according to company filings. For the first half of 2025, the firm posted a net loss of $152m, compared to a $31m loss in the same period in 2024, primarily due to restructuring costs and expansion investments. These mixed results will likely shape ongoing investor sentiment following the IPO. Remember, past performance is not a reliable indicator of future results.

Partnerships and adoption

Expanding partnerships with retailers and payment providers could drive Klarna’s stock price. In January 2025, Klarna’s expanded Stripe partnership doubled merchant adoption, opening access to millions of businesses. This could translate into higher transaction volumes and revenue growth.

However, merchant retention is equally important – if major brands reduce their reliance on Klarna due to fees, competition, or regulatory constraints, sentiment may turn negative.

Competitive landscape

Klarna faces competition from Affirm and PayPal and Apple Pay Later, and traditional credit providers, with competition intensifying as BNPL services integrate with embedded finance solutions. 

Klarna’s ability to differentiate its offerings through AI-driven credit models and risk management, reduce customer acquisition costs while maintaining user engagement, and secure exclusive retail and e-commerce partnerships, are all factors that will determine its market share and stock performance.

Regulatory environment

Governments and financial regulators are tightening oversight of BNPL services, particularly in the UK, US, and EU. New rules, such as stricter affordability checks, clearer disclosures, and credit reporting requirements, could impact Klarna’s approval rates, compliance costs, and customer conversion rates.

A proactive regulatory approach may help Klarna maintain an edge, while delayed adaptation could put it at a disadvantage compared to firms better prepared for compliance changes.

Macroeconomic factors and consumer spending

Klarna’s business model is closely tied to consumer spending trends. In 2024, higher inflation and interest rates affected discretionary purchases. If economic conditions improve, higher retail spending could boost Klarna’s stock, while rising borrowing costs may pressure margins.

Traders may track inflation, retail sales, and central bank policies when assessing Klarna’s stock potential.

How to trade Klarna stocks via CFDs

Klarna completed its IPO on 10 September 2025, and traders can now speculate on its share price via contracts for difference (CFDs), subject to broker availability. Remember, CFDs are typically traded with leverage which amplifies both profits and losses, making them risky.

Now that Klarna has completed its IPO, traders can speculate on its share price movements. Here's how to trade Klarna stocks now they are available.

• Step 1Choose a brokerage platform: select a regulated broker offering Klarna CFDs. Learn more about contracts for difference in our CFDs trading guide.
• Step 2Set up a trading account: register and verify your identity.
• Step 3Deposit funds: add money to your account using your preferred method.
• Step 4Monitor stock performance: stay updated on financial reports and industry news.
• Step 5Place a trade: buy or sell shares using market or limit orders. Consider stop-loss orders* for risk management.

You can keep your finger on the pulse of the markets with expert insight from our in-house analysts. Check out our news and analysis section for more.

*Standard stop-losses are not guaranteed. Guaranteed stop-losses incur a fee when activated.

Which other fintech stocks can I trade?

Now that Klarna has completed its IPO and is publicly listed, you can gain exposure to BNPL and fintech through Klarna itself, as well as these other publicly listed companies:

• Paypal (PYPL) – a leading digital payments platform, owning Venmo and offering BNPL, crypto, and merchant services.

• Block (SQ) – formerly Square, it provides POS systems, Cash App, and BNPL via Afterpay. Expanding into blockchain and AI-driven finance.

• Visa (V) & Mastercard (MA) – global payments giants, processing billions of transactions, including Klarna BNPL payments.

• Affirm (AFRM) – a major BNPL provider, partnering with Amazon and earning from merchant fees and financing.

• Adyen (ADYEN) – a Dutch payment processor for businesses like Meta, Uber, and Microsoft, supporting global transactions.

• SoFi (SOFI) – a digital bank offering loans, stock trading, crypto, and student loan refinancing.

Learn more about shares and stock markets in our comprehensive shares trading guide.

Create an account Create a demo account

FAQ