Klarna IPO - how to trade Klarna stocks

Learn about Klarna and its upcoming initial public offering (IPO), with potential price drivers, and how to trade stocks via CFDs.

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When is the Klarna IPO?

Klarna is expected to IPO in April 2025, having filed a draft registration with the SEC in per

November 2024. The company plans to release its S-1 filing in March 2025, detailing financials and IPO terms. As of 27 February 2025, Klarna’s latest valuation stood at $14.6 billion, based on an October 2024 assessment by Chrysalis Investments.

While the IPO is anticipated on a US exchange, details on the share price, offering size, and ticker symbol remain unconfirmed. Klarna’s listing may be influenced by market sentiment, fintech valuations, and regulatory developments. Traders may also consider fintech stocks like PayPal or Block for sector exposure.

It’s important to remember that Klarna's IPO plans may change as regulations and market conditions evolve.

Learn more about the IPO process in general in pur comprehensive guide. 

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 600,000 merchants, operating in 26 countries, and serves more than 85m users.

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 expected IPO, with renewed investor confidence.

By early 2025, Klarna expanded to 45+ countries, serving 150m+ users. A strengthened Stripe partnership boosted merchant adoption, while AI now handles two-thirds of customer inquiries. Klarna also committed to 100% green electricity and is preparing for a $15bn 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 IPO valuation will depend on investor appetite for fintech stocks, interest rate trends, and Klarna’s profitability trajectory. While its latest private funding suggests a valuation between $15bn-$20bn, analysts debate whether its BNPL-heavy model can justify a higher market price.

Klarna’s stock price – if the company goes public – could be influenced by various factors, including financial performance, competitive pressures, regulatory developments, and macroeconomic conditions.

Earnings, growth and profitability

As a private company, Klarna doesn’t release regular earnings. Post-IPO, quarterly reports will be key indicators of valuation. Key metrics like net transaction revenue, default rates, and operating margins will determine whether Klarna can sustain profitable growth. Stronger-than-expected results could boost investor confidence, while weaker earnings may lead to declines.

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

If Klarna completes its IPO, traders will be able to speculate on its share price movements. Here’s how to trade Klarna stocks when they become available.

• Step 1Choose a brokerage platform: select a regulated broker offering Klarna shares or 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.

Which other fintech stocks can I trade?

As of February 2025, Klarna remains privately held, with an IPO expected in April 2025. But you can gain exposure to fintech and BNPL through these 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.

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