Klarna heads for Wall Street: should your checkout offer pay later?
Buy now, pay later has grown from a fashion-site novelty into a mainstream payment method. Its best-known provider is now preparing to list. Here is how merchants should think about it.
By the Xuru Technologies team · 16 March 2025
Key takeaways
- On 14 March 2025 Klarna publicly filed its registration statement for a proposed US initial public offering.
- BNPL lets shoppers split payments, often interest-free, while merchants pay a fee per transaction.
- Pay-later options can lift conversion and basket size for some products, but fees are higher than standard cards.
- Regulators in the UK, EU and elsewhere are tightening rules on how BNPL is presented.
Pay-in-four buttons now appear on everything from trainers to dental treatments. The question for a business owner is simple: does it bring in enough extra sales to justify the fee?
What happened
TechCrunch reported that Klarna made its F-1 filing public, showing it had returned to profitability. FinTech Futures noted the planned New York listing, a closely watched test for fintech IPOs.
What it means for merchants
- Higher-ticket items benefit most. Furniture, electronics, courses, treatments and travel see the strongest effect.
- Fees are real. BNPL merchant fees are typically higher than card fees; check them against your margins.
- Presentation is regulated. Show terms clearly and avoid pressuring vulnerable customers.
- Your payment provider may already include it — Stripe, PayPal and others offer pay-later methods you can switch on.
What to do now
| Step | Why |
|---|---|
| Check your average order value | BNPL makes more sense for larger baskets |
| Compare total fees per order | Know the true cost per sale |
| Test on a few products first | Measure conversion before rolling out |
| Show clear terms at checkout | Builds trust and meets consumer rules |
Frequently asked questions
Does offering BNPL increase sales?
For many merchants, especially with higher-priced items, it can increase conversion and order size. Results vary, so test and measure.
Who carries the risk if a customer doesn't pay?
Typically the BNPL provider pays the merchant upfront and takes on the repayment risk, which is part of why fees are higher.
Can service businesses offer BNPL?
Yes. Clinics, education providers and travel businesses often use pay-later options, subject to provider rules.
The right payment options, presented clearly.
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