Klarna’s Second Act: From BNPL Pioneer to Global Digital Bank

Klarna is gearing up for an IPO in September, reframing itself from a pandemic-era “buy now, pay later” champion into a global digital bank. Founder Sebastian Siemiatkowski had planned to list in spring, aiming to raise at least $1 billion, but pulled the deal after Trump’s tariff threats spooked markets. Now, he’s back with a banking pitch—rolling out debit cards in the US and Europe, adding savings accounts, and eventually stock trading and remittances.

Klarna already has a banking license in Sweden, where 80% of adults are customers and $9.5 billion sits in deposits. A new UK e-money license will let it offer banking products to its 11 million British users. The US has become its biggest market, driven by partnerships with Walmart (exclusive BNPL provider), Airbnb, Uber, and DoorDash. The goal: 10 million debit cardholders within a year.

The shift follows a sharp comedown—Klarna’s valuation plunged from $45.6B in 2021 to $6.7B in 2022 as rates rose. It cut staff, tightened risk controls, and returned to profitability, generating $2.8B in revenue last year. Three-quarters of sales still come from merchant fees, but the banking push is meant to diversify.

Competition is stiff. In digital banking, Klarna faces players like Revolut, Chime, and Nubank—though the latter dominates Latin America, not Klarna’s turf. Critics warn of BNPL risks in a fragile consumer economy, but Klarna points to sub-1% delinquency rates and a debt-purchase deal with Elliott Management to keep credit exposure in check.

Siemiatkowski’s endgame is a global financial assistant that blends payments, shopping, and money management—making banking feel, in his words, “less worrying.”