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Klarna IPO Puts Spotlight on BNPL Trends with Five Key Charts

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As Klarna prepares for its long-anticipated New York IPO, attention has turned once again to the rise of buy now, pay later (BNPL) services that have reshaped consumer financing in the U.S. and abroad. Once a niche option, BNPL has surged in popularity since the pandemic, with billions in online sales now processed through installment plans.

1. Share of Online Spending

  • From January to August 2025, U.S. consumers spent $696.2 billion online, with $56.3 billion (8.1%) of that coming from BNPL purchases, per Adobe Analytics.

  • In 2024, BNPL accounted for $82.4 billion in total online spending — a 9.9% increase year-over-year.

  • BNPL’s share of e-commerce continues to expand, though it still trails far behind credit card usage.

2. On-Time Payments

  • Klarna boasts a 99% global repayment rate, while Afterpay reported 96% of customers paid on time in Q2 2025.

  • Affirm disclosed a 2.3% delinquency rate (loans over 30 days late) as of June 2025.

  • However, Federal Reserve Bank of Philadelphia data shows a slight drop in punctuality: “pay-in-four” users making all payments on time fell by 1 percentage point between late 2023 and late 2024.

3. Average Monthly Payment

  • 57% of BNPL users reported monthly payments of $100 or less, according to The Motley Fool.

  • By contrast, the average monthly credit card payment was $181 (Experian, Q1 2025).

  • Only 1% of BNPL users carried monthly payments above $1,000, suggesting most use the service for small-ticket items rather than large purchases.

4. Uses Across Generations

  • Millennials and Gen Z are the most frequent BNPL users, particularly for everyday purchases like clothing or electronics (PYMNTS Intelligence 2024).

  • Baby Boomers and seniors remain skeptical, with the majority saying they would not use BNPL for daily expenses.

  • This generational divide reflects differences in trust, digital adoption, and attitudes toward debt.

5. Credit Scores

  • BNPL attracts more consumers with subprime (580–619) and near-prime (620–659) credit scores than traditional credit products.

  • Still, about 50% of applicants have scores above 660, suggesting the service appeals broadly across credit tiers (LexisNexis Risk Solutions, 2023).

  • Because most BNPL providers don’t report to credit bureaus, regulators warn this creates a “blind spot” — untracked debt that could mask financial vulnerability.

Regulatory Backdrop

  • The CFPB had required BNPL firms to handle disputes, issue refunds, and send billing statements, but the Trump administration revoked that rule, easing compliance burdens for lenders.

  • Consumer advocates argue this leaves gaps in oversight, particularly as BNPL expands beyond luxury goods into everyday spending.

Outlook

Klarna’s IPO underscores how deeply BNPL has penetrated consumer finance, growing rapidly as shoppers seek flexibility amid high living costs. But questions remain: Can BNPL remain sustainable if delinquency rates creep up, and will regulators reimpose stricter protections?

Klarna Q2 Revenue Rises 20% Amid IPO Pause

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Swedish fintech Klarna reported on Thursday that its second-quarter revenue grew 20% year-on-year on a like-for-like basis, while adjusted operating profit increased slightly. Revenue for April–June reached $823 million, with adjusted operating profit at $29 million, up $1 million from the same period last year.

The number of active Klarna customers rose 31% year-on-year to 111 million. The company, known for its short-term financing model that reshaped online shopping, paused its planned U.S. initial public offering (IPO) in April due to recession concerns and uncertainty over tariffs.

Klarna had publicly filed its IPO paperwork in March, marking its second attempt to go public in three years since starting the process in November 2024. The company has not indicated when it will resume its IPO plans, though Bloomberg reported last month that it could occur as soon as September.

Klarna to Launch $40/Month Unlimited 5G Mobile Plan in U.S. as It Expands Telecom Offerings

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Swedish fintech Klarna announced on Wednesday its entry into the U.S. mobile services market with a $40 per month unlimited mobile plan offering unlimited 5G calls and data. The move marks Klarna’s effort to diversify beyond financial services and follow the trend of fintech companies entering the telecom space, alongside competitors like British firm Revolut.

Klarna will provide its mobile plan using the platform of U.S. startup Gigs, which operates as a mobile virtual network operator (MVNO) platform in partnership with AT&T. This enables Klarna to offer mobile services without owning network infrastructure.

With over 25 million U.S. users, Klarna views the mobile plan as a natural extension of its neobank ambitions. CEO Sebastian Siemiatkowski told Reuters that the company’s goal is to solve everyday problems, and mobile fits into this strategy.

Unlike most fintechs that launch mobile services in other countries before entering the U.S., Klarna is starting directly in its largest market. The company plans to expand the mobile offering to the UK, Germany, and other countries later this year.

Industry analysts predict significant disruption in the MVNO market over the next two years as more enterprises launch their own mobile services, though increased competition also brings higher risks of failure. The U.S. MVNO market is expected to grow from $14.83 billion in 2025 to $20.84 billion by 2030, according to Mordor Intelligence.

The fintech sector is increasingly seeing telecom services as a growth area, with other fintech firms such as Germany’s N26 and Brazil’s Nubank already offering mobile plans in various countries. Even outside the fintech world, investors like actor Ryan Reynolds and businesses linked to former U.S. President Donald Trump have entered the MVNO market.