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Klarna Doubles Down on Becoming a Neobank: Beyond Buy Now, Pay Later
From BNPL pioneer to financial super app, the Swedish fintech giant bets big on banking, telecom, and a U.S. IPO comeback.
Stockholm, June 30, 2025 – Klarna, once synonymous with “Buy Now, Pay Later” (BNPL), is officially shifting gears. The Swedish fintech giant is doubling down on its ambition to transform into a full-fledged digital bank—a move designed to secure sustainable revenue streams and win back investor confidence as it eyes a renewed U.S. IPO.
The Pivot: From BNPL to Banking
Klarna rose to fame on the back of BNPL, offering shoppers interest-free installments at checkout. But BNPL has come under heavy regulatory and competitive pressure in recent years. With rising credit losses and tighter consumer lending rules in Europe and the U.S., Klarna’s leadership knew the business model needed a broader base.
Now, Klarna wants to be more than just a payments facilitator. It’s rolling out products that span the core features of a digital bank:
✅ U.S. Debit Card – Klarna’s new Visa-backed debit card allows U.S. users to spend directly from their Klarna account, integrate with digital wallets, and earn cashback. It’s a direct challenge to neobanks like Chime and traditional banks’ digital offerings.
✅ Mobile Phone Plans – In a surprising move, Klarna is launching a mobile plan in partnership with AT&T, combining banking and telecom services. Customers can manage spending, phone bills, and loyalty rewards under one app.
✅ Deposit & Savings Products – Klarna’s expanded European banking license lets it offer deposit accounts in select markets, with competitive interest rates aimed at attracting savers wary of traditional banks.
These changes align with Klarna’s recent rebranding, positioning itself as a “financial super app” rather than just a checkout option.
Eyes on the U.S. IPO
The neobank pivot comes as Klarna reportedly prepares to relaunch its IPO plans in the U.S., potentially as early as late 2025. The company, last valued at around $6.7 billion after a sharp downround in 2022, hopes that diversifying into banking will help it command a better valuation on public markets.
Analysts say the move is strategic. Klarna’s revenue from BNPL fees and merchant partnerships has plateaued, while banking products can generate steady income via interest margins, interchange fees, and subscription services.
“Klarna’s super app vision is compelling, but competition in digital banking is fierce,” notes fintech analyst Sofia Lindqvist. “Expanding into telecom is a bold bet—it could be a differentiator or an expensive distraction.”
Regulatory Headwinds
Klarna’s path isn’t free of obstacles. Regulators in the U.K. and EU are tightening rules around consumer lending and digital financial services, potentially increasing compliance costs. Klarna must also prove to investors it can achieve profitability while expanding into capital-intensive banking operations.
Still, Klarna remains one of Europe’s most recognized fintech brands. With over 150 million global users and partnerships with major retailers, it has a significant base to build from.
The Future of “Super Apps”
Klarna joins a growing list of fintechs seeking to become “super apps,” offering everything from payments to savings, credit, investing, and even telecom services in one place. The model has flourished in Asia, but Western markets remain more fragmented—and consumers less accustomed to using a single app for all financial needs.
If Klarna can execute, it could redefine how consumers interact with their finances in Europe and North America. If not, it risks stretching itself too thin in a crowded fintech battlefield.
Either way, Klarna’s evolution marks a significant chapter in fintech’s shift from niche products toward universal financial ecosystems.
Sources:
Financial Times, “Klarna accelerates shift to digital bank ahead of second IPO attempt”
Reuters, Klarna press releases
Industry analyst commentary