Klarna goes public: pay-later is now mainstream finance
Six months after tariff turmoil put it on hold, Klarna's listing has happened. For merchants, it confirms pay-later as a standard checkout option — with costs to weigh.
By the Xuru Technologies team · 11 September 2025
Key takeaways
- Klarna priced its IPO at US$40 a share on 9 September 2025, valuing it at about US$15 billion, and began trading on the NYSE on 10 September.
- Its shares rose on debut.
- BNPL has expanded from fashion to travel, electronics, healthcare and everyday purchases.
- Merchants should match payment options to their average order value and margins.
When we covered Klarna's IPO filing in March, the question was whether pay-later belonged at your checkout. The answer increasingly depends on what you sell.
What happened
AP and SiliconANGLE reported the pricing and first-day rise, as the IPO market continued to recover after Figma's debut.
What it means for merchants
- Shoppers expect choice — cards, wallets and pay-later for larger purchases.
- Costs vary. Compare BNPL fees with card fees and expected uplift.
- Regulation is tightening in several markets, so present terms clearly.
- Integration is easy through most major payment providers.
Payment options by business type
| Business | Consider |
|---|---|
| Low-value retail | Cards and wallets; BNPL optional |
| High-value retail or furniture | BNPL plus cards and wallets |
| Travel and hotels | Pay later or instalments for bigger bookings |
| Clinics and education | Instalment plans with clear terms |
Frequently asked questions
Does BNPL increase average order value?
Many merchants report higher order values with pay-later, but results depend on product and audience. Test before committing.
Is BNPL risky for merchants?
Typically the provider takes repayment risk and pays the merchant upfront, in exchange for a fee.
Can we offer BNPL internationally?
Availability varies by country and provider. Check which methods your customers' countries support.
The right payment mix for your customers.
We integrate cards, wallets and pay-later options and test them end to end on every device.
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