Klarna prices IPO at $40, values buy now, pay later firm at $15 billion

Klarna priced its long‑awaited initial public offering at $40 a share late Tuesday, valuing the Swedish buy now, pay later company at more than $15 billion and setting it up to begin trading Wednesday on the New York Stock Exchange under the symbol "KLAR."

The $40 per‑share price topped the range analysts had expected, which had called for a $35 to $37 offering. The size places Klarna among the largest IPOs of 2025, a year that has seen an uptick in companies pursuing public listings. JPMorgan Chase and Goldman Sachs served as lead underwriters for the offering.

Klarna was founded in 2005 as a payments company and entered the U.S. buy now, pay later market in 2015 through a partnership with department store operator Macy’s. Since then, the company has expanded to serve hundreds of thousands of merchants, embedded its service in internet browsers and digital wallets, and signed a recent partnership with Walmart. The company said 111 million consumers worldwide have used its services.

Klarna’s most popular product is a "pay‑in‑4" plan that lets shoppers split purchases into four payments over six weeks. It also offers longer‑term installment plans for which it charges interest. The company reported second‑quarter revenue of $823 million and an adjusted profit of $29 million in August.

Klarna’s U.S. listing underscores executives’ view that American shoppers are a key growth market, even though the company is based in Sweden and remains widely used in Europe. Its debut will make Klarna the second‑largest buy now, pay later company on U.S. public markets, trailing Affirm, whose shares have risen more than 40% so far this year and which trades with a market value of roughly $28 billion.

Investors have shown interest in buy now, pay later firms amid a belief that the services may capture market share from traditional banks and credit cards by offering alternative payment options at checkout. Analysts say the segment’s growth has attracted both consumer attention and increased regulatory scrutiny in some jurisdictions over lending practices and disclosures.

Klarna’s IPO follows months of preparation and comes as global commerce increasingly integrates flexible payment options. The company will begin trading on Wednesday, marking a major milestone in its push to expand in the United States and to compete with other publicly traded fintechs in the payments and consumer credit space.