SAN FRANCISCO, Jan. 05, 2026 (GLOBE NEWSWIRE) -- A securities class action styled Nayak v. Klarna Group plc, et al., No. 1:25-cv-07033 (E.D.N.Y.) has been filed, seeking to represent investors who purchased or otherwise acquired Klarna Group plc (NYSE: KLAR) securities in the company’s September 2025 initial public offering. National shareholder rights law firm Hagens Berman continues to investigate claims that Klarna’s offering documents violated federal securities laws and urges investors who suffered sig ...

Klarna Group plc (NYSE:KLAR) is among the 7 Best Digital Payments Stocks to Invest In Now. Klarna Group plc (KLAR) Collaborates With Coinbase For Stablecoin Funding On December 19, 2025, Fortune revealed that Klarna Group plc (NYSE:KLAR) and cryptocurrency exchange Coinbase have partnered. According to cryptocurrency reporter Ben Weiss, the agreement is to take institutional investors’ funds denominated in stablecoins. The buy now, pay later company, which had traditionally avoided involvement in cryptoc ...

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Buy now, pay later company Zip has received a warehouse facility of about $283 million from Victory Park Capital, the investment firm announced Monday. Atlas SP Partners partnered with Victory Park Capital to facilitate the transaction. The two-year deal will support Zip’s U.S. BNPL receivables, allowing the company, which has a U.S. headquarters in ...

Two-thirds of Americans have less in their savings accounts than they did last year, according to a new KeyBank survey. If your balance is shrinking, too, you’re not alone — and there are clear reasons why this is happening. Read Next: 6 Things You Must Do When Your Savings Reach $50,000 Find Out: If You’re Thinking About Getting a CD, Suze Orman Says You Should Do It Now — Here’s Why Here’s a look at why bank balances are shrinking, and how you can turn things around if this is true for you. Why Americ ...

With prices rising and airfare still sky-high, the “buy now, pay later” (BNPL) boom has officially hit vacations. More than half of Americans now use BNPL, and nearly one in five plan to use it to pay for holidays, according to The New York Times (NYT). (1) But experts warn that while spreading out payments for a beach getaway may seem harmless, it can come with hidden risks. BNPL plans divide payments into installments. “Break anything into four and it’s more affordable, but life happens and people for ...

Group 1: Mastercard and Tencent Partnership - Mastercard is partnering with Tencent to integrate its Move funds transfer service with Tencent's TenPay and Weixin Pay, allowing international senders to transfer money directly to recipients in China [1][2] - This collaboration aims to capture a share of the inbound payment flows to China, which received over $31 billion in international P2P transfers in 2024 [2] Group 2: Visa's Expansion in Cross-Border Payments - Visa is collaborating with OwlTing Group to launch OwlPay Cash, enabling users in the U.S. to make local currency remittances to 26 countries, including Mexico and India [4][6] - Both Visa and Mastercard are focusing on expanding their roles in cross-border payments to diversify revenue streams beyond traditional card transactions [5] Group 3: Worldline's Strategic Moves - Worldline has sold its Swedish subsidiary CoreOrchestration for approximately $160 million to focus on its core payments business amid regulatory pressures [14][15] - The company has previously divested units totaling about $600 million to manage financial challenges and lower its earnings outlook [15] Group 4: SumUp's New Offerings - SumUp is set to launch cash deposit services for merchants in the UK, Italy, Spain, and France, enhancing their banking solutions [20][21] - The company has attracted over €1 billion ($1.2 billion) in customer deposits across 1.5 million business accounts, indicating significant growth [21] Group 5: Socure's Acquisition of Qlarifi - Socure has acquired Qlarifi, a buy now, pay later credit startup, to enhance its identity verification technology and credit decisioning capabilities [24][25] - The acquisition aims to build infrastructure for responsible lending and improve consumer protection in the BNPL sector [25][26]

The deluge of new high-profile IPOs in 2025 has largely all followed a predictable pattern: a big burst upfront, followed by a deep multi-month correction. Klarna ( KLAR ), the "buy now, pay later" digital bank that originated in Sweden and recently launched inWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He ...

Core Viewpoint - Affirm's stock has experienced a significant decline of 24% over the past three months, despite a remarkable increase of approximately 365% over the past three years, raising questions about its current investment appeal [1]. Group 1: Company Performance - Affirm's gross merchandise volume reached $10.8 billion in Q1 of fiscal year 2026, marking a 42% year-over-year increase [4]. - The company has generated free cash flow of $769 million over the past four quarters, representing 22% of its revenue, and reported a net income of just under $81 million in the latest quarter [5]. - Delinquency rates have remained stable, consistent with levels from 2024 and 2025, indicating a solid credit performance [4]. Group 2: Competitive Position - Affirm continues to stand out in the buy now, pay later industry by not charging hidden or late fees, which are common complaints among users of similar services [2]. - The company has established partnerships with major brands and e-commerce platforms, including Amazon, Apple, and Shopify, which have contributed to its business growth despite low consumer sentiment [3]. - Affirm's enterprise-value-to-revenue ratio has more than doubled to 8.1 over the past three years, indicating an increase in the stock's valuation [9]. Group 3: Market Outlook - The buy now, pay later sector remains competitive, and Affirm must maintain high execution standards to succeed [8]. - The recent five-year extension of the partnership with Amazon is a positive development, although reliance on a single partner could pose risks [8]. - Despite the current stock price volatility, Affirm is still considered relevant in the market, but investment in the stock may require a long-term perspective and a diversified portfolio approach [9].

Core Insights - Sezzle is positioned in the buy now, pay later (BNPL) market, which is expected to experience strong growth over the next 7 to 10 years, benefiting all players in the space [2][17] - The company differentiates itself by focusing on credit building for younger, mid to low-income customers, which is a significant market segment in the U.S. [15][18] Company Background - Sezzle was co-founded by Charlie Youakim, who transitioned from a previous mobile payment company called Passport to focus on retail payments and BNPL after recognizing its potential [4][7] - The company initially faced challenges in the mobile payment space but pivoted to BNPL, which has since seen rapid growth [7] Market Dynamics - The BNPL market is characterized by a rising tide that benefits all players, with Sezzle aiming to capture a larger market share through innovation and competition [17] - Sezzle's customer base primarily consists of younger individuals who are more likely to use BNPL as a budgeting tool, contrasting with traditional credit card users who may face debt cycles [9][12] Financial Performance - Sezzle maintains strong gross margins, with a principal loss rate (PLR) of about 2% and top-line revenue percentage around 11%, indicating resilience even in economic downturns [12] - The company can quickly adjust credit limits and stop further credit extensions in response to customer financial difficulties, providing a safety net that traditional credit cards do not offer [12] Customer Usage - Sezzle's customers are increasingly using the service for essential purchases, moving beyond initial categories like beauty and fashion to include general retail [13] - The average transaction amount for Sezzle is in the low hundreds, significantly lower than typical credit card balances, which can average around $6,000 [10] Competitive Landscape - Sezzle competes with established players like Klarna, Afterpay, and PayPal, but believes that the market is still in its early stages, allowing for multiple successful players [17] - The company emphasizes its unique offerings, such as credit building and open-loop products, which allow customers to use Sezzle at various retailers without being tied to specific merchant websites [15][18]

Core Insights - Senate Democrats are pushing for greater transparency in the buy now, pay later (BNPL) industry, seeking detailed information on user demographics, transaction frequency, and late payment rates [1][2][3] Group 1: Legislative Actions - Senators Elizabeth Warren, Tammy Duckworth, Cory Booker, Richard Blumenthal, and Mazie Hirono have sent letters to major BNPL companies including Affirm, Afterpay, Klarna, PayPal, Zip, Sezzle, and Splitit requesting data on loan services [2] - The senators are particularly interested in the number of transactions, average loan sizes, and user statistics [2][3] Group 2: Consumer Debt Insights - Consumers utilizing BNPL loans carry an average of $871 more in credit card debt compared to non-BNPL users at the time of loan origination, indicating potential overextension of credit [4] - This statistic is attributed to research from the Consumer Financial Protection Bureau, suggesting that BNPL users may be taking on unaffordable debt [5] Group 3: Financial Vulnerability - Research indicates that BNPL borrowers tend to be more financially vulnerable, exhibiting lower savings, liquidity, and credit scores, along with more signs of financial distress compared to non-users [6] - The National Consumer Law Center and Consumer Reports have advocated for regulatory measures to oversee BNPL companies, highlighting the need for consumer protection [6] Group 4: Industry Growth and Regulation - The rapid expansion of the BNPL sector, coupled with the absence of federal guidelines since the rescindment of a previous interpretive rule, underscores the necessity for more comprehensive data on BNPL transactions [7] - The lack of available data on BNPL products contrasts with traditional forms of debt, prompting calls for increased regulatory oversight [7] Group 5: Industry Response - Some publicly traded BNPL companies have already disclosed certain information requested by the senators, indicating a level of transparency within the industry [8] - Industry representatives assert that data from these companies shows responsible usage of BNPL products, with reported default and charge-off rates below 1% for members like Klarna, Zip, Afterpay, and PayPal [9]