The consumer use of buy now, pay later continues to grow. Many, many consumers and all segments are using it. It's become pretty ubiquitous on online shopping at checkout and also is offered in many stores.Buy now, pay later plans are changing consumer spending habits by allowing purchases to be split into short term, typically interest free installments offering an alternative to credit cards. Credit isn't new. Credit's been around for thousands of years, and credit cards aren't new, but they've had a hard ...

Core Insights - Gap Inc. has integrated Klarna's payment options into its U.S. brands, enhancing customer payment flexibility [1][2] - Klarna offers two payment methods: Pay in Full for immediate payment and Pay in 4 for splitting costs into four interest-free installments [2][3] - The adoption of buy now, pay later (BNPL) options is significant among U.S. consumers, with a notable impact on purchasing behavior [3][4] Company Developments - Gap Inc. aims to provide customers with more choices and control over their payment methods across its brands [3] - Klarna's Chief Commercial Officer highlighted the importance of offering flexible payment options to enhance the shopping experience [3] Market Trends - The adoption rate of active BNPL accounts varies significantly by age, with nearly 25% among consumers aged 25-35 and just over 5% among those aged 65 and older [4] - A significant portion of consumers (43%) indicated they would not make a purchase without BNPL options, while 42% would opt for cheaper alternatives [4] Klarna's IPO Performance - Klarna's shares rose 15% on its IPO day, reflecting strong market interest in BNPL services [5] - The company priced its IPO at $40, with shares opening at approximately $52 and peaking near $57 before settling around $45.82 [5] - Klarna reported serving 111 million active consumers and 790,000 merchants across 26 countries prior to its IPO [5]

Core Insights - The fintech industry is highly competitive, with PayPal and StoneCo as prominent players, each focusing on different market segments [1][2] - PayPal is evolving into a comprehensive commerce ecosystem, while StoneCo is concentrating on micro, small, and medium-sized businesses in Brazil and Latin America [1][2] PayPal Overview - PayPal is focusing on four strategic growth pillars: winning checkout, scaling omni, growing Venmo, and driving PSP profitability [3] - Venmo's revenue increased over 20% in Q2, with total payment volume (TPV) growing 12%, marking the highest growth rate in three years [3] - Branded checkout is a significant growth driver, with over 60% of branded volume in the U.S. flowing through PayPal's enhanced platform [4] - PayPal launched PayPal World, a global wallet partnership, expanding access to over 2 billion consumers [5] - Despite a 6% rise in TPV, payment transactions fell by 5%, indicating some engagement challenges [6] StoneCo Overview - StoneCo reported a 27% year-over-year growth in adjusted net income and a consolidated ROE of 22% in Q2 2025 [7] - The company is divesting non-core assets to focus on financial services, targeting a total addressable market of BRL 100 billion [7] - The MSMB payments segment grew, with a 17% increase in active clients and a 12% rise in total payment volume [8] - Banking active clients increased by 23% to 3.3 million, with client deposits up 36% year over year [9] - StoneCo's disciplined approach to credit provisioning and funding costs supports its growth strategy [10] Financial Performance and Estimates - PayPal's 2025 sales and EPS estimates suggest increases of 3.97% and 12.47%, respectively [11] - StoneCo's 2025 sales are expected to rise by 7.56%, with EPS projected to jump by 14.07% [12] - PayPal shares are trading at a forward P/E of 11.99X, while StoneCo is at 10.93X [14] Market Positioning - Over the past three months, StoneCo has outperformed PayPal and the S&P 500 [15] - PayPal's global scale and diverse offerings appeal to investors, while StoneCo's focus on Brazil's MSMB segment presents significant growth potential [18] - StoneCo is viewed as a more compelling buy for growth-oriented investors, currently holding a Zacks Rank 1 (Strong Buy) compared to PayPal's Zacks Rank 2 (Buy) [19]

Group 1 - Klarna's stock performance post-IPO indicates a need for patience from investors, particularly in the context of the growing "buy now, pay later" (BNPL) trend [1] - Klarna, based in Stockholm, is one of the pioneering personal fintech companies that provide short-term loans to consumers with minimal or no fees [1] - The popularity of BNPL loans is increasing as consumers facing financial strain seek alternatives to manage rising costs [1] Group 2 - Klarna's IPO saw a nearly 15% gain, reflecting the excitement surrounding the BNPL market [4] - PayPal's CEO views the BNPL sector as a significant growth driver, especially in light of Klarna's IPO performance [4] - Klarna's IPO pricing exceeded expectations, positioning it as a strong competitor against Affirm in the BNPL space [4]

Core Insights - Sezzle Inc. is positioned as a promising multibagger stock within the rapidly growing "Buy Now, Pay Later" (BNPL) market, providing flexible payment solutions for both merchants and consumers [1] - The global BNPL online value is projected to grow at a 9% CAGR, reaching approximately $580 billion by 2030, indicating substantial growth opportunities for Sezzle [2] - In Q2 2025, Sezzle reported a Gross Merchandise Volume (GMV) of $927 million, a 74% year-over-year increase, with total revenue rising 76.4% to $98.7 million [3] Financial Performance - Sezzle's adjusted net income increased by 92%, and the adjusted EBITDA margin improved by 550 basis points year-over-year to 38.4%, showcasing strong operational discipline [3] - Despite strong financial results, the stock experienced a decline of around 34% due to management's guidance indicating a slowdown in growth, which disappointed investors [4] - The stock remains up 100% year-to-date, reflecting overall positive market sentiment despite recent challenges [4] Analyst Sentiment - Analysts have maintained a positive outlook on Sezzle, with B. Riley Financial raising its price target from $101 to $111 while keeping a Buy rating, indicating the stock is attractively valued [5] - The company's consumer-focused features, such as Sezzle Up, which has over 2.9 million users, differentiate it from competitors by linking installment payments with credit-building [2] Industry Context - Sezzle operates in the U.S. financial technology sector, specializing in BNPL solutions that allow consumers to split purchases into interest-free installments, thereby enhancing merchant sales and customer engagement [6]

Join me now from the floor of the New York Stock Exchange, got Sebastian Simatowski, CLA, CEO. Sebastian, it is great to see you. Congrats, Sebastian, on the big day.Walk us through, Sebastian, what this day means for you, Sebastian, for the company, and why why go public now. What what were the variables, the factors in that decision. Look, it's been obviously, look, due to the very troubling news just recently on Charlie Kirk, I'm a bit like not in the celebratory spirit I was previously, but it's been ob ...

Core Insights - Klarna has successfully gone public on the New York Stock Exchange, with its stock price increasing by 30% on debut, reaching $52 per share, which gives the company a valuation of $15.1 billion and raised $1.37 billion from the IPO [1][4][5] - The IPO marks a significant milestone for Klarna, which was founded in 2005 and had been hinting at going public since 2019, facing delays due to market conditions [2][4] - Klarna's valuation has seen a dramatic decline from its peak of $45.6 billion in 2021 to $6.7 billion in 2022, reflecting the challenges faced by the fintech sector [4][5] Company Overview - Klarna is a Swedish "buy now, pay later" company that has evolved significantly since its founding, with a strong consumer base and market position [5] - The company has made operational changes, including requiring remote employees to return to the office and shifting focus back to customer support roles [6] IPO Details - Klarna's IPO is the first major public offering of the fall season, with expectations of more companies following suit before year-end [3] - The IPO price of $40 per share was a significant markdown from previous valuations, indicating a shift in investor sentiment [4][5] Investor Insights - Sequoia Capital emerged as the largest beneficiary of Klarna's IPO, holding a stake worth approximately $3.5 billion after the listing [9][16] - Other notable shareholders include cofounder Victor Jacobsson, whose stake is valued at $1.38 billion, and CEO Sebastian Siemiatkowski, with a stake worth about $1.17 billion [17][29] - Heartland A/S, owned by billionaire Anders Holch Povlsen, holds a stake valued at $1.36 billion, while Commonwealth Bank of Australia has a stake worth $798 million [21][30] Market Context - Klarna's IPO comes amid a challenging environment for fintech companies, with rising interest rates and regulatory risks impacting investor confidence [5] - The company has faced significant losses, prompting it to set aside more capital to cover potential defaults from customers [5]

Company Overview - Klarna is a Swedish buy now, pay later (BNPL) company that is set to begin publicly trading after raising $1.37 billion in its initial public offering (IPO) [1] - The IPO was priced at $40 per share, reflecting strong demand and valuing the company at approximately $15.1 billion [1][2] Market Context - Klarna's current market capitalization is significantly lower than its previous valuation of $45.6 billion following a large investment from SoftBank in 2021, but it is more than double its worth of $6.7 billion after a private funding round in 2022 [2] - The IPO comes during a period of recovery in the capital raising environment, with several other companies also expected to price their offerings this week [3] Industry Trends - Klarna's IPO is part of a broader trend of successful public market debuts in 2025, with 144 companies going public, representing a 53% increase compared to the same timeframe in 2024 [4] - The technology sector has seen significant activity, with tech IPOs raising over $12 billion this year [4] Business Model and Performance - Klarna is known for its BNPL scheme, which allows customers to pay for purchases in installments, and has a user base of 93 million with partnerships with over 675,000 merchants [5] - The company reported that 99% of consumer loans extended in 2024 were paid off on time, outperforming the Q2 credit card delinquency rate of 3.05% from US commercial banks [6]

NEW YORK (AP) — Klarna made a solid debut on the New York Stock Exchange, with shares of the Swedish buy now, pay later company rising nearly 15%, the latest in a run of high-profile initial public offerings this year. Klarna stock opened at $52 a share Wednesday, a 30% premium to the company's $40 pricing. It took roughly three-and-a-half hours for the specialists on the floor of the NYSE to manually price the first batch of trades of the company. The shares rose as high as $57 before losing some momentu ...

“The critique comes from a place of arrogance.” On “Money Talks”, @mlevchin hits back at critics of buy now, pay later https://t.co/6Uq05dTfra ...