Klarna goes public as millions of Americans rely on buy-now, pay-later. Experts worry it’s snowballing ‘quickly into a serious financial burden’

Core Insights - Klarna's IPO raised $1.37 billion, valuing the company at $15 billion, highlighting the growth of the buy-now, pay-later (BNPL) sector [1][2] - A significant portion of consumers, nearly 40%, are unaware that BNPL usage will soon affect their credit scores [1][5] Company Overview - Klarna has expanded its user base to over 111 million globally and partnered with more than 790,000 retailers [2] - The popularity of BNPL services is evident, with three-fourths of surveyed U.S. adults relying on such options [2] Industry Trends - BNPL services are increasingly replacing credit cards for younger generations, allowing consumers to manage large purchases through smaller payments [3] - However, there are risks associated with overextending oneself financially, as consumers may struggle to manage multiple payment schedules [4] Consumer Awareness - A survey indicates that 30% of U.S. adults have used at least one BNPL service, reflecting its growing acceptance [2] - The impending inclusion of BNPL data in FICO scores starting this fall raises concerns for consumers who may not be prepared for the impact on their credit [5]