Buy-now-pay-later giant Klarna charges toward a US IPO! Could this industry see a boom amid the Federal Reserve's rate-cutting cycle?

After almost three years of cold winter, the US equity tier one market is finally experiencing a boom in IPOs in 2025.

Kai $Figma Inc(FIG.US)$ 、 $Circle(CRCL.US)$ 、 $Bullish(BLSH.US)$ As many star companies go on the market next week, more companies are coming to the US stock market, including buy-and-pay platforms $Klarna Group(KLAR.US)$ 、Cryptos ExchangeXchange $Gemini Space Station(GEMI.US)$ , Cryptos Lending Platform $Figure Technology Solutions(FIGR.US)$ 。

This week is likely to be one of the most intense periods of large-scale IPO trading since the end of 2021.

In the coming week, investors expect that new stocks will disappear and become the next pet of Capital Markets.

BeforeCrypto companies are on the market hot! Gemini and Figure battle against IPOs, hoping to become the next CircleDetailed analysis of Gemini and Figure can be viewed by interested fellow investors.

This document will highlight the business of this company in the post-acquisition payment platform Klara, and the value of some financial lending companies during the reporting period.

Klarna: “Buy-By-Paid” Grandfather

Klarna is a Swedish CNI Xiangmi Lake Fintech Index company founded in 2005, a global provider of payment and purchasing services, and is the market leader in Buy and Pay Later, BNPL.

Klarna's issue price is in the $35-37 range, with a valuation of $13 billion to $14 billion, Klarna's near $50 billion valuation in 2021 and a valuation of more than $150 billion early this year, and the market previously recognized the company as undervalued. It is worth noting that the company will be investing in the company in 2020.

The core of Klarna is to make shopping and payments simpler and easier. Unlike traditional European credit card or instant payment methods, Klarna allows users to choose a split payment when purchasing a Commodity, and there is usually no need to pay any extra interest or manual fees (tool terms vary by region and merchant).

Klarna's main payment solutions, such as Pay Now, Pay Later (Pay in 30 Days) and Split Purchase Installations, make shopping more dynamic and actionable when buying high-value commodities.

Klarna's current Commodity Transaction Trade (GMV) reached US$112 billion, with 0.11 billion active users, and established partnerships with 0.79 million merchants.

Specifically, the company has the advantages of a diversified revenue structure, AI moors, high-quality ecosystems, and more.

— Diversified revenue structure

According to the data disclosed in the prospectus, the company has gradually increased its revenues for almost three years. In 2022 - 2024, the company's revenue was $1.904 billion, $2.276 billion, and $2.811 billion, respectively.

Among them, the income from Trade and Services was divided into US$1.468 billion, US$1.768 billion, US$2.136 billion, US$0.436 billion, US$0.508 billion, and US$0.675 billion.

At the same time, the company's profitability is also improving. In 2022 - 2024, the company had an operating loss of $0.98 billion, $0.323 billion, $0.121 billion, and a net loss of $1.035 billion and $0.244 billion, and a profit of $21 million in 2024.

However, in the first half of 2025, Klarna had a revenue of $1.524 billion and a revenue of $1.325 billion for the same period last year; an operating loss of $0.136 billion, an operating loss of $32 million for the same period last year; a net loss of $0.152 billion and a net loss of $31 million for the same period last year.

Klarna's Q2 2025 revenue was US$0.823 billion, up from US$0.682 billion year-on-year, while Trade and Services revenue was US$0.682 trillion, compared to US$0.219 billion.

Klarna's GMV for the second quarter of 2025 was $31.2 billion, an increase of 21% from $25.846 billion in the same period last year. Klarna had an operating loss of $46 million in the second quarter of 2025 and an operating loss of $4 million for the same period last year; a net loss of $53 million and a net loss of $1 million for the same period last year.

Overall, Klarna's business model is built on a diversified revenue structure that both ensures continued profitability and maintains user trust. Its core revenue sources include:

1. Merchant Trade Handling Fees: Klarna receives a comparable use for each trade from its partner merchants, which is the most important source of income.

2. Interest income in installments: If you choose a long-term installment plan, you pay an interest fee, and Klarna makes a direct profit from such financial products. Short-term interest-free plans are primarily used to improve user experience and willingness to use.

3. Affiliate marketing commissions: Klarna's apps not only serve as a payment tool, but also serve as a traffic gateway. Klarna earns a corresponding referral commission when users link to co-branded consumption via an in-app referral link.

4. Subscription revenue: Klarna provides exclusive discounts, extended payment periods, and more value-added benefits for subscribers through the introduction of a paid membership system to further expand the channel of change.

This diversified monetization architecture not only supports Klarna's financial stability during rapid expansion, but also strengthens the sustainability and risk resilience of its business model.

— AI Moat River

Klarna took advantage of the opportunity to create AI to become the world's first financial technology company to launch a ChatGPT plug-in, which is the CNI Xiangmi Lake Fintech Index sample board to showcase ChatGPT on the web.

Previously, Klarna became an early partner of OpenAI and launched a ChatGPT add-on to Klarna Shopping. Consumers just need to enter their requirements and expectations in ChatGPT, and AI can quickly help users search and recommend eligible Commodities on the Klarna website.

The IPO book shows that the company will be able to achieve a turnaround in 2024, mainly from the application of artificial intelligence. In February 2024, Klarna launched an AI assistant powered by OpenAI. It can be used in 23 markets around the clock, supports 35 languages and handles complex tasks including payments, purchases, refunds, returns and more.

With Business Model and Customer Numbers continuing to expand, Klarna's sales revenue declined from $0.531 billion in 2022 to $0.328 billion in 2024.

Not just marketing, Klarna also minimizes reliance on external suppliers through standardized AI applications.

— Premium Ecosystem

In fact, Klarna has successfully built a “two-sided ecosystem” that effectively connects consumers and merchants and drives a positive cycle of two-way growth.

1. For consumers: Klarna provides flexible space for users to rotate funds through flexible payment options. This model is especially suitable for consumers who want to avoid high interest rates on credit cards and want more freedom to manage their personal budgets.

2. For merchants: Retailers joining Klarna can significantly increase conversion rates, increase customer unit prices, and effectively reduce cart abandonment rates. Klarna offers a smooth and highly integrated payment experience, especially popular with consumers who are used to digital shopping.

It is worth noting that in early 2025, Walmart decided to move from Affirmative to Klarna as another standalone BNPL provider. In March 2025, Klarna will launch a partnership with Walmart's BNPL business through a partnership with Walmart's Financial Technology CNIXIANGMILAKEFintech Index Venture Investment One (known as OnePay) Business, as a substitute for affirmations, is a huge benefit to Clarna.

Interestingly, in early 2025, Klarna CEO Sebastian Siemiatkowski went public with his previous approach to cryptocurrencies. The company began accepting Bitcoin and other cryptocurrencies as a form of payment in June, a major departure from traditional Fintech blockchain technology..

What's more, the global technology startup Apple Pay Later is in the hands of new competitors, compared to the fact that Apple Pay Later, a global technology startup, is launching its own payment buying service in the United States. However, the company is looking forward to the Gold Hour ahead of the joint stock reduction week.

What other financial credit companies are worth paying attention to during the interest rate reduction cycle?

For the time being, the September Fed tapering is on the table. Historical Data shows that the debt reduction will narrow the net gap between Banks and Financial Institutions, but the consequences are far from this. In fact, the core of the decline is to show the need for borrowing to stimulate the financing sector to provide a strong support.

First, reducing the cost of capital implies a direct impact on corporate and personal borrowing. Even at the beginning of the economic recovery, the expanding Industry and Start-ups are bracing for strong financial needs to support business growth. The fall in the cost of borrowing creates other favorable financial conditions and drives the expansion of the lending business of Financial Institutions. Meanwhile, CNI Xiangmi Lake Fintech Index has certified other high-performance service models that can respond quickly to these needs and show competitive advantages.

Second, the economic warming is accompanied by a warming of consumer credit demand. Innovative credit models such as “first buy and pay later” (BNPL) are particularly favored during the interest-rate cycle. This model is effective in stimulating consumption potential by lowering the consumption threshold and providing installment payment options. And falling interest rates further reduced the cost of installment financing, significantly increasing the popularity and attractiveness of such products.

As a result, financial credit stocks are looking forward to opportunities when the Fed tapering is imminent. Let's take away from the above Klarna, there are many credit companies in the US stock market, and Steppenwolf is looking at related companies on the stock market, for reference by fellow investors:

Among them, the payment infrastructure includes Marqeta; the payment system includes $Visa(V.US)$ 、 $MasterCard(MA.US)$ ; digital payment platforms include $PayPal(PYPL.US)$ 、 $Block(XYZ.US)$ ; Buy-after-pay companies include $Affirm Holdings(AFRM.US)$ 、 $Sezzle(SEZL.US)$ ; consumer credit companies include $Upstart(UPST.US)$ 、 $SoFi Technologies(SOFI.US)$ 、 $OppFi(OPFI.US)$ 、 $Rocket(RKT.US)$ 、 $LendingClub(LC.US)$ 、 $Pagaya Technologies(PGY.US)$ 。

BeforePPI DOWNGRADE STEP! The stock price of Sezzelle, a financial credit loan company, is looking forward to a bright start”A detailed analysis of the Industry can be viewed by interested fellow investors.

As a whole, financial credit companies are more sensitive to the environment, and investors agree that they are looking forward to starting the recession period, so these companies are investment opportunities that are worth paying attention to. Although the renewed pressure will lead to a further increase in the interest rate, the need for disbursement loans may decrease, and capital gains will increase rapidly. This does not put pressure on creditors and lending Institutions, but may increase the difficulty of these companies finding funds for loans and reduce the volume of joint ventures.