STOCKHOLM, Sweden–How profitable has buy now, pay later (BNPL) become in a short amount of time? Klarna, the Swedish-based company that is one of the biggest players in the space, is reportedly in discussions with banks for a potential U.S. initial public offering (IPO) valued at $20 billion.
The company is reportedly considering listing as early as the third quarter of this year,
The talks are ongoing, and the valuation and timing could change, according to the report.
While BNPL has really taken hold in recent years in the U.S., Klarna was founded in 2005 and now reports it has offered credit to more than 150 million shoppers worldwide, saying it handles approximately two-million transactions daily.
37 Million U.S. Customers
In the U.S., the company said it has approximately 37 million customers, and has been profitable in the U.S. for four consecutive quarters.
But the company has also seen some turbulence in its valuation. Pymnts.com noted its valuation dropped from $45.6 billion in 2021 to $6.7 billion in 2022 due to investor concerns about rising interest rates impacting online lending platforms, per the report.
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