Klarna IPO Spotlights 10 Things to Know About the BNPL Consumer

Klarna made its expected big splash on Wednesday (Sept. 10) with its New York Stock Exchange debut, raising roughly $1.37 billion at an IPO price of $40 per share, and sending its stock soaring about 30% to an opening price of $52, valuing the firm in the $15-20 billion range.

It’s the biggest FinTech listing of 2025 and a landmark moment for the buy now, pay later (BNPL) segment, just as our recent PYMNTS Intelligence reports over the past year detail why the “pay-later” consumer is becoming a central force reshaping retail, credit and payments.

With that in mind, let’s mark Klarna’s IPO with the following Top Ten PYMNTS Intelligence data sheet on consumer attitudes regarding and use of BNPL and the pay-later economy, with a quick take on implications for issuers, merchants, FinTechs and card networks.

1. It’s mainstream: 128 million U.S. adults used a pay‑later product from at least one alternative credit provider in the last 12 months. Implication: Pay later is no longer niche; product, risk and marketing teams must plan for it as a primary tender. 
2. Market scale and trajectory: U.S. BNPL transactions equal about $175 billion, up ~88x from 2019. Implication: Rapid scaling is shifting the share of checkout decisions; issuers and merchants need clear positioning of card installments versus BNPL.
3. Who overindexes by age: By late 2024, 44% of Gen Z and 47% of millennials reported BNPL use in the prior year; 38% of all U.S. consumers did. Implication: BNPL is a default financing behavior for digital-first cohorts, which is essential for customer acquisition and retention strategies. 
4. Why they use it (need vs. convenience): Consumers can be categorized by their degree of financial necessity. Those identified as “convenience” users are more likely to use credit cards, installment plans and BNPL (39.0%) compared to “necessity” users (38.4%) or the population total (38.7%). Convenience users show a higher share using only credit cards (41.7%) compared to necessity users (16.2%). Implication: Distinct segments require different underwriting, messaging and merchant offers. 
5. Financial strain magnifies use: Consumers with unpredictable finances were 3.5 times likelier to have used BNPL in the prior 30 days (8.9% vs. 2.5%). Implication: Cash‑flow‑based underwriting and proactive collections/repayment support tools are table stakes. 
6. High earners are heavy users and spend more: New PYMNTS Intelligence data shows high‑income BNPL users spend ~40% more on BNPL than low‑income users. Implication: BNPL isn’t just subprime substitution; affluent users are an upsell and loyalty lever, especially for large‑ticket categories.
7. What they buy: As of early 2025, top categories purchased with pay later include clothing (40%), groceries (32.2%) and appliances (29.5%). Implication: BNPL has moved well beyond discretionary items into basket staples. That’s critical for grocers, big‑box and general merchandisers.
8. BNPL can be make‑or‑break at checkout: If BNPL isn’t available, 43% of consumers say they would not make the purchase and 42.4% would buy a cheaper option; 35.1% would pay but delay other bills. Implication: Visibility and acceptance directly convert demand; suppressing BNPL can depress average order value and conversion.
9. User satisfaction is high: 76% of BNPL users report being very or extremely satisfied with the experience (higher than other installment types). Implication: Strong satisfaction underpins repeat use and cross‑sell opportunities (e.g., longer‑term plans, card‑linked installments). 
10. Risk reality check: As of mid‑to‑late January 2025, PYMNTS Intelligence found that nearly 30% of all BNPL loans were past due, across the 2,330 individuals surveyed, though better than the 33% rate logged in November. Implication: Volatile delinquency underscores the need for dynamic line management, income/expense visibility, and early‑stage outreach. 

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