PayPal CEO Sees Buy Now, Pay Later As Growth Driver Amid Klarna IPO

Core Viewpoint - PayPal is intensifying its efforts in the buy now, pay later (BNPL) market, aiming to compete more aggressively against rivals like Affirm and Klarna, with expectations of BNPL becoming a significant growth driver for the company [1][2][3] Company Developments - PayPal reported a total payment volume of over $30 billion in BNPL last year, indicating strong consumer adoption of this payment method [2] - The company’s June-quarter earnings rose 18% to $1.40 per share, with revenue climbing 5% to $8.3 billion, surpassing analyst expectations [6] - Venmo revenue increased by 20%, reflecting successful new product initiatives [6] Market Competition - Klarna is set to launch its initial public offering (IPO), further intensifying competition in the BNPL space, especially after securing a partnership with Walmart [4][11] - Other competitors in the BNPL market include Affirm, Block's Afterpay, and Sezzle, with traditional credit card issuers also entering the BNPL arena [5] Performance Metrics - PayPal's total payment volume processed from merchant customers increased by 6% to $443.5 billion, while BNPL volume surged by 20% [7] - PayPal's stock dipped slightly to $67.65, while Affirm's stock rose to $88.01, reflecting a 41% increase in 2025 [7]