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'Buy Now, Pay Later' platforms increase in popularity
NBC News· 2025-09-16 21:58
Business Model & Market Positioning - Klarna views itself as more than just a buy now pay later service, aiming to be a comprehensive payment solution similar to a PayPal wallet, with 20% of transactions being debit payments [1] - Klarna is expanding its services to include a new card and mobile phone plans, reflecting its ambition to diversify beyond buy now pay later [6] - Klarna believes it can offer more affordable and better products in the US market compared to existing options, leveraging its experience in the European market with lower rates [7] Risk & Customer Behavior - Concerns exist regarding the potential for customers to overextend themselves with buy now pay later services [2][4] - A recent survey indicates that 41% of buy now pay later users have paid late at least once in the past year, an increase from 34% the previous year [5] - Klarna states its losses are 20-30% lower than credit card companies, suggesting a healthier product despite being a form of credit [3] - Klarna's customers typically repay their loans in 50-60 days on average [5] Financial Performance & Valuation - Klarna's valuation is now over $16 billion after going public [6] Competitive Advantage - Klarna emphasizes its ability to adapt quickly to economic changes, positioning itself as nimble in uncertain economic times [6]
‘Buy Now, Pay Later’ platforms soar in popularity
NBC News· 2025-09-14 23:37
Groceries are expensive, but I got all of this today for $55. >> These days, more and more people are buying it now. It's not just for buying clothes. >> And paying for it later.Call it modern-day layaway. Hugely helpful for Randis Denny's in Memphis. >> It makes it much easier to kind of navigate through life sometimes.He says he uses it for everything from plane tickets to groceries, then pays it off in a series of fixed interestf free installments over time. >> It's an option to where if something happen ...
Klarna IPO Bursts Out of Gate With Nearly 15% Gain Amid BNPL Frenzy
Investors· 2025-09-10 20:23
TRENDING: See Nvidia's Growing Appetite For Startup Investments Klarna competes in the "buy now, pay later" consumer financing market vs. Affirm Holdings (AFRM), Block's (XYZ) Afterpay, PayPal Holdings (PYPL), Sezzle and many others. PayPal plans to step up BNPL marketing. Many top credit card issuers, such as Chase, now offer their own version of BNPL, creating more competition. While "buy now, pay later" remains its core business, Klarna also offers an instant payment method and has held its banking licen ...
Fintech Sector Check-In After Klarna's Impressive Debut
Schaeffers Investment Research· 2025-09-10 19:13
Group 1 - Klarna Group made its market debut with stock opening at $52, above the IPO price of $40 per share [1] - The debut is impacting fintech peers, causing pressure on Upstart Holdings Inc and Affirm Holdings Inc shares [1] Group 2 - Upstart Holdings Inc stock is down 10.4% at $61.75, ending a four-day win streak, despite an 83.7% year-over-year gain [2] - The stock has decreased by 21% over the last nine months and is testing support at the $60 level [2] - Options trading for Upstart is significantly higher than usual, with 129,000 calls and 93,000 puts traded [3][4] Group 3 - Affirm Holdings Inc shares are down 4.9% to $84.09, marking its third loss in four sessions [5] - The stock has increased by 39.2% in 2025 but is retreating from a three-year high of $100 [5] - A new support level is emerging at $80, with the 20-day moving average trending higher since late April [5] Group 4 - Options traders are leaning bearish on Affirm, with a 50-day put/call volume ratio of 1.19, higher than 95% of annual readings [6]
Klarna CEO Says Most Investors Not Selling Much in IPO
Bloomberg Television· 2025-09-10 16:00
Caroline and I have quizzed you over the years on when an IPO happens. Why it happens. I just want to bring you some news, if I may.In the time that we've come on air, there's a headline on the Bloomberg terminal that the shares are indicated to open between 50 and $52 each. You priced the IPO at 40. Just summarize your reaction to that and what it means to you on a day like today.I'm happy I didn't hear what you said on the price or I pretend not to hear it so I don't have to comment on it. We'll find out ...
Klarna IPO prices at $40 per share, valuing BNPL leader at $15 billion
Yahoo Finance· 2025-09-10 13:23
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]
X @Investopedia
Investopedia· 2025-08-29 16:00
Affirm swung to a quarterly profit with better-than-estimated results, as the buy now, pay later (BNPL) provider posted surging gross merchandise volume. https://t.co/e0Z6rO47Wx ...
Wall Street Breakfast Podcast: UnitedHealth Jumps As Funds Boost Stakes
Seeking Alpha· 2025-08-15 10:43
Group 1: Berkshire Hathaway Investments - Berkshire Hathaway acquired a new stake in UnitedHealth (UNH) during Q2 2025, purchasing 5.04 million shares valued at $1.57 billion [3] - The company also took new stakes in Nucor (NUE) and D.R. Horton (DHI), while reducing its holdings in Apple (AAPL) and Bank of America (BAC) [3] Group 2: Other Investment Moves - Eminence Capital exited its positions in Bank of America (BAC), Uber (UBER), GE Healthcare (GEHC), Capital One (COF), and Primo Brands (PRMB), while acquiring 0.57 million shares of UnitedHealth (UNH) [4] - Renaissance Technologies also invested in UnitedHealth Group (UNH), taking a new stake of 1.35 million shares [5] Group 3: Intel Developments - Intel (INTC) shares rose 7.38% following reports that the U.S. government is considering taking a financial stake in the company to support the development of a factory hub in Ohio [6] - The plan for Intel could potentially make the site the largest chip foundry globally, although details on the investment amount and legality remain unclear [7] Group 4: Airbnb Payment Options - Airbnb (ABNB) introduced a "Reserve Now, Pay Later" option for U.S. guests, allowing reservations without upfront payment for listings with moderate or flexible cancellation policies [8][10] - A survey indicated that 60% of respondents find flexible payment options important, and 55% utilize them when available [10]
Airbnb Launches $0-Upfront Booking Option for US Stays
PYMNTS.com· 2025-08-14 18:49
Core Insights - Airbnb Inc. has launched a "Reserve Now, Pay Later" feature for U.S. customers, allowing travelers to book certain domestic stays without upfront payment [1][2] - The feature is designed for listings with moderate or flexible cancellation policies, enabling guests to delay full payment until just before the property's free cancellation window closes [2][3] - This new option aims to provide more flexibility for travelers, particularly for groups coordinating payments, and complements existing payment options like "Pay Part Now, Part Later" and "Pay Over Time" [3][4] Industry Trends - The introduction of the "Reserve Now, Pay Later" feature aligns with a growing consumer preference for installment and deferred payment products, as evidenced by an estimated $175 billion in BNPL transactions in the U.S. in 2024 [6] - The demand for flexible payment options is increasing, with consumers seeking greater financial management and convenience in uncertain economic conditions [6] - Airbnb's expansion of payment flexibility tools is expected to lower the barrier to commitment for cost-conscious travelers, potentially driving more bookings [4][5]
DLocal (DLO) - 2025 Q2 - Earnings Call Transcript
2025-08-13 22:02
Financial Data and Key Metrics Changes - The company achieved a record high Total Payment Volume (TPV) of $9.2 billion, marking a 53% year-over-year growth and a 14% quarter-over-quarter increase [4][18] - Revenue reached $256 million, growing 50% year-over-year or 63% on a constant currency basis, with an 18% quarter-over-quarter increase [5][19] - Gross profit hit a record of $99 million, up 42% year-over-year or approximately 55% on a constant currency basis [5][20] - Net income for the quarter totaled $43 million, negatively impacted by the Argentine peso devaluation [5][25] - Free cash flow was $48 million, a significant 22% increase from the first quarter [8][25] Business Line Data and Key Metrics Changes - Growth was particularly strong in remittances and commerce, followed by SaaS, delivery, streaming, and ride-hailing, with some weaknesses in advertising [18] - The company added three new licenses in the UAE, Turkey, and the Philippines, enhancing its portfolio of financial services licenses [8] Market Data and Key Metrics Changes - The top three markets now represent less than 50% of revenues, down eight percentage points since 2023, indicating increased geographic diversification [12] - Revenue in the rest of the markets is growing almost three times faster compared to the last four quarters [12] Company Strategy and Development Direction - The company is focused on expanding its merchant base and increasing share of wallet by integrating additional Alternative Payment Methods (APMs) [9] - The strategy includes significant investment in product innovation, with recent launches such as SmartPix in Brazil and buy now, pay later integrations [13][14] - The company aims to leverage stablecoin solutions, positioning itself as a key player in the emerging technology space [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, citing strong performance in the first half and sustained momentum across businesses [27][29] - Risks highlighted include evolving macroeconomic conditions, regulatory changes, and potential currency devaluation [28][29] Other Important Information - The company announced a transition to a majority independent Board and the cancellation of treasury shares held on the balance sheet [30][32] Q&A Session Summary Question: What drove the better-than-expected results? - Management noted strong momentum across Brazil, Mexico, and other markets, with a significant increase in localization of payments by global merchants [36][39] Question: Is the growth coming from a few particular merchants or across the board? - The growth is driven by the top 20 merchants, indicating a broad-based increase rather than concentration in a few [41][43] Question: Can you clarify the one-off processing costs in Brazil? - Management confirmed that part of the gain was a reversal, but Brazil is expected to sustain momentum in gross profit [47][50] Question: How do you see stablecoins impacting the business? - Management views stablecoins as an opportunity rather than a threat, emphasizing the company's unique position in providing on-ramps and off-ramps for stablecoin transactions [51][53] Question: What is the outlook for take rates? - Management expects a gradual decline in take rates, influenced by increased volumes and the introduction of new products [56][57] Question: Can you elaborate on tariffs as a risk? - Management highlighted potential risks from increased tariffs on cross-border e-commerce, particularly in Mexico, but noted no current negative impacts [66][70] Question: What is the strategy for offline payments? - The company is developing capabilities for offline payments in response to specific merchant contracts, indicating a shift in strategy [71][72] Question: What should be expected regarding operating expenses in the second half of the year? - Management anticipates an increase in operating expenses due to hiring and expansion into new markets and products [73][74]