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NEW YORK - Klarna, the global digital bank and payments provider with a market capitalization of $16.17 billion, has reached one million sign-ups for its debit-first Klarna Card in the United States just 11 weeks after its July 4 launch, according to a company press release.
The card, which combines debit functionality with flexible payment options, is attracting approximately 13,000 new users daily, with sign-ups peaking at 50,000 on September 23. This rapid adoption aligns with the company’s strong revenue growth of nearly 20% over the last twelve months.
The Klarna Card allows consumers to either pay immediately using the debit function or spread costs over time, offering payment flexibility at any merchant that accepts the card.
"With the Klarna Card, consumers get the best of both worlds: the simplicity of a debit card with the flexibility of credit," said David Sandström, Klarna’s Chief Marketing Officer, in the statement.
The rapid adoption rate suggests significant consumer interest in alternative payment methods that provide both immediate payment capabilities and financing options in a single product.
Klarna indicated that based on current growth trends, the card launch could become one of the most significant product introductions in the company’s 20-year history.
The financial technology company, which specializes in "buy now, pay later" services, has been expanding its product offerings beyond its core installment payment solutions as it competes in the evolving digital payments landscape. According to InvestingPro analysis, while Klarna isn’t currently profitable, analysts expect positive earnings this year, with revenue forecast to grow by 46%. Additional financial metrics and growth indicators are available with an InvestingPro subscription.
In other recent news, Klarna Group plc has successfully completed its initial public offering, raising $200 million by selling 5 million shares at $40 per share. Existing shareholders also sold an additional 29.3 million shares, with the stock now trading on the New York Stock Exchange. This IPO price was $4 above the midpoint of the previously estimated range, indicating strong interest in the offering.
Klarna has also expanded its partnership with Apple Pay, now offering flexible payment options for in-store purchases on iPhone in the U.S. and UK. This development builds on their previous collaboration for online and in-app Apple Pay transactions. Analyst firms have shown varied opinions on Klarna’s stock, with Needham initiating coverage with a Hold rating due to valuation concerns, while Compass Point took a more bullish stance, giving a Buy rating and a $53 price target.
Needham highlighted Klarna’s leadership in the buy-now-pay-later sector and its competitive advantage from a full banking license. Meanwhile, Compass Point cited a favorable risk-reward profile for its positive outlook. These developments reflect Klarna’s strategic moves and market perceptions as it navigates its growth trajectory.
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