Klarna identified the United States as its fastest-growing market this week, just months after its high-profile IPO. The Swedish buy-now-pay-later giant said American adoption is accelerating faster than any other region, a shift that's already rattling domestic BNPL competitors and traditional credit card issuers.
Klarna's US push
CEO Sebastian Siemiatkowski told investors that the US market has become Klarna's top priority since going public. The company's post-IPO momentum is nowhere stronger than across the Atlantic, where consumer spending on installment loans continues to climb. Klarna's network of merchant partners in the US has expanded by roughly 40% this year alone, though exact figures weren't disclosed.
The timing isn't great for incumbents. Affirm and Afterpay, which already compete fiercely for checkout dominance, now face a better-funded Klarna with lower capital costs post-listing. Meanwhile, Visa and Mastercard are watching their transaction volumes inch toward deferred-payment rails.
Pressure on rivals
Traditional credit card issuers have long dismissed BNPL as a niche product, but Klarna's IPO validated the model at scale. With Klarna now prioritizing the US, those same issuers are scrambling to roll out their own installment offerings. Capital One launched a 'pay over time' feature last month, and JPMorgan is testing a similar product — but Klarna's merchant base and data advantage give it a lead.
For smaller BNPL players, the pressure is existential. Klarna can afford to subsidize merchant fees and offer zero-interest promotions in ways that rivals with thinner margins cannot. Analysts expect consolidation in the sector within the next 12 to 18 months.
Crypto move
Klarna also confirmed it is expanding into cryptocurrency services. The company didn't specify which products or timelines, but a spokesperson described the move as “a natural extension of our payment infrastructure.” Klarna already processes over $100 billion in transaction volume annually, and adding crypto could open new revenue streams — especially among younger, crypto-savvy US users.
The crypto pivot is notable given Klarna's historically cautious stance on digital assets. The company had previously avoided crypto-related offerings, citing regulatory uncertainty. That stance appears to have softened, possibly in response to clearer US guidelines expected later this year from the SEC and CFTC. Klarna's engineering team is reportedly building a crypto wallet and a stablecoin settlement system, though the company declined to confirm details.
Regulators are watching. The New York Department of Financial Services has signaled it will scrutinize any BNPL-to-crypto expansion, especially regarding consumer protections. Klarna will need to navigate state-by-state money transmitter licenses if it wants to offer crypto custody or trading in the US — a costly but not insurmountable hurdle.
For now, Klarna's post-IPO trajectory is clear: double down on the US and experiment with crypto. Whether those two strategies collide or complement each other — and how competitors respond — will shape the BNPL and payments landscape through the second half of 2026.
