Group 1 - The IPO market has been lackluster in 2026, with few high-profile listings despite some notable exceptions like Figma [1] - Klarna, a buy-now, pay-later company, recently went public, closing 15% higher than its IPO price of $40 on its first trading day [2] - Klarna positions itself as offering "flexible payment options," including buy now, pay later, credit cards, and AI-based data insights for customers and merchants [3] Group 2 - Klarna partners with a wide range of top brands, including Disney, Macy's, Uber, and Adidas, and has agreements with 790,000 merchants globally [5] - The company does not charge interest on small loans paid within 30 days but does impose late fees and interest on larger purchases over extended periods [6] - Klarna's average client balance over the past 12 months was $80, significantly lower than the average U.S. credit card debt of $6,730, with an average loan duration of 40 days [8] Group 3 - Klarna's provision for credit losses was 0.52% of gross merchandise volume (GMV) over the trailing 12 months, compared to 2.92% for commercial U.S. banks in 2024 [8] - The company has strong underwriting capabilities and a full banking license, although its expansion plans are currently impacting profitability [7]
Klarna Stock IPO Soars. Here's Everything You Need to Know.