Klarna wins: Walmart chooses buy now pay later, is this a game changer?

Klarna, the “buy now, pay later” company, is making headlines. Why? They just snagged a major partnership with Walmart.

What Does This Mean?

You’re shopping at Walmart, eyeing that new TV. Instead of paying the full price upfront, you can split it into smaller payments. Klarna makes that happen.

Here’s the deal:

• Klarna is teaming up with One Pay, a digital wallet.
• Walmart shoppers can use One Pay to choose a payment plan.
• Plans range from 3 to 36 months.

Affirm Loses Out

This is a big win for Klarna. It also means one of their rivals, Affirm, is out. They used to offer “buy now, pay later” at Walmart. Not anymore.

Why It Matters

Walmart has a ton of customers. We’re talking millions every week. This deal gives Klarna access to all those shoppers. That’s a huge opportunity for growth.

How Klarna Makes Money

How does Klarna actually earn cash? They charge stores like Walmart a fee. It’s a percentage of the total purchase.

They also make money from interest and late fees. But most of their income comes from those store fees.

Klarna’s IPO on the Horizon

Here’s another thing to watch: Klarna is planning to go public. They’re aiming for the New York Stock Exchange. The stock ticker? KLAR.

Klarna’s Numbers

As of late 2024, Klarna had:

• 93 million active users
• $2. 8 billion in revenue

They also work with big names like Etsy and Airbnb.

A Rocky Road

It hasn’t always been smooth sailing for Klarna. Their value dropped in 2022. Investors weren’t so sure about “buy now, pay later” companies. But things are looking up now. Klarna is profitable again.

What’s Next?

Keep an eye on Klarna. Their Walmart deal is a major move. And their upcoming IPO is something to watch. Will they continue to grow? Only time will tell.