Buy now, pay later (BNPL) is in another record run, with total payment volume across top providers climbing more than 20% year-over-year (YoY). PayPal (PYPL), Affirm (AFRM), and Klarna (KLAR) are driving that growth, and Klarna’s move into public markets in September stood out. The Swedish fintech company delivered 2025’s largest IPO, raising about $1.37 billion at $40 per share. The stock opened at $52 and rose 15% on the first day. That debut put Klarna at the center of the BNPL growth story, where flexible credit meets AI-powered personalization across retail and online payments.
The new momentum has not been missed by big institutions. Just last week, Cathie Wood’s ARK Invest added 76,000 more shares of KLAR to its ARK Fintech Innovation ETF (ARKF), extending a buying streak that shows strong conviction in emerging fintech names. Klarna is now among the most watched new listings on Wall Street, with Q3 revenue guidance between $870 million and $920 million, pointing to a path toward steady profitability.
