Klarna's New York Listing Highlights BNPL Surge in the U.S.
Klarna's upcoming New York listing underscores the rapid growth of buy now, pay later (BNPL) services in the U.S. amid the shift to online shopping spurred by the pandemic. Despite concerns over delinquencies, BNPL continues to attract consumers, notably Millennials and Gen Z, given its relatively low delinquency rate compared to credit cards.
The long-anticipated New York listing of Stockholm-based buy-now-pay-later (BNPL) pioneer Klarna on Wednesday has reignited interest in installment payment plans favored by U.S. shoppers. Klarna's expansion is indicative of the BNPL sector's growth amid increased online shopping during the COVID-19 pandemic.
Adobe Analytics reports that BNPL helped drive $82.4 billion in online spending in 2024, a marked 9.9% increase from 2023. Key players like Klarna and Affirm are boosting consumer purchasing power by offering flexible payment plans. However, because BNPL lenders often don't report to credit agencies, tracking delinquencies remains challenging.
Klarna asserts a 99% global repayment rate for its products. In 2025, Afterpay reported 96% of customers paid on time, while Affirm noted 2.3% of loans were overdue by over 30 days as of June. Despite regulatory scrutiny, BNPL continues to appeal to younger generations due to its perceived ease over credit cards.
(With inputs from agencies.)
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