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Buy Now, Pay Later (BNPL) has transformed how consumers approach payments, offering a flexible alternative to traditional credit. This shift has been especially evident in the United States, where BNPL usage continues to grow rapidly. By 2024, the number of BNPL users in the U.S. reached 93.3 million, with further growth expected as the payment method becomes more widely accepted across industries.
Among the leaders in the BNPL space is Klarna, a Swedish company that has gained significant traction since entering the U.S. market in 2015. Klarna’s ability to integrate seamlessly with major retailers and offer user-friendly features has helped it build a large and loyal customer base. This article examines Klarna’s growth from 2020 through its projected customer numbers in 2026, exploring the factors driving its success and the challenges it faces.
Klarna’s Customer Growth in the U.S.: 2020–2024
Since launching in the U.S., Klarna has experienced remarkable growth, cementing its position as one of the top BNPL providers. By 2024, Klarna’s customer base in the U.S. had grown to 43.9 million, a significant increase from just 14.1 million users in 2020. However, growth rates have slowed in recent years due to increased competition and a maturing market.
The following breakdown illustrates Klarna’s year-by-year growth in the U.S.:
- 2020: 14.1 million users (+115% annual growth)
- 2021: 24 million users (+70.9%)
- 2022: 34.8 million users (+44.9%)
- 2023: 40.3 million users (+15.6%)
- 2024: 43.9 million users (+9%)
From 2020 to 2024, Klarna’s customer base in the U.S. more than tripled, adding 29.8 million new users. While the pace of growth has slowed since the early years, the consistent expansion demonstrates Klarna’s ability to adapt to evolving market dynamics.
Key Factors Behind Klarna’s Success
Strong Partnerships with Retailers
Klarna has collaborated with thousands of retailers across industries, including fashion, electronics, and beauty. By partnering with major brands like Sephora, Nike, and Best Buy, Klarna has expanded its reach and provided customers with flexible payment options at checkout.
Convenience and Accessibility
The company’s mobile app is a significant driver of its success. It allows users to browse stores, track payments, and access exclusive deals, all in one place. Klarna’s seamless integration with eCommerce platforms has made it a preferred choice for both shoppers and businesses.
Popularity Among Younger Consumers
Klarna appeals strongly to Millennials and Gen Z, who prioritize financial flexibility. The ability to split purchases into manageable payments without interest or fees has resonated with these demographics, contributing to Klarna’s rapid adoption.
eCommerce Growth
The continued rise of eCommerce has provided a fertile environment for BNPL platforms. As more consumers shop online, Klarna’s presence at checkout offers a convenient alternative to traditional credit cards, further driving its adoption.
Financial Education Features
Klarna has introduced tools that help users manage their spending and avoid debt. By positioning itself as a financially responsible BNPL provider, the company has built trust among its user base.
Klarna’s Customer Forecast: 2025–2026
While Klarna’s growth remains robust, it is expected to slow further as the BNPL market matures. By 2025, Klarna’s U.S. customer base is projected to grow to 47.2 million, reflecting a 7.5% increase from the previous year. In 2026, this number is expected to reach 49.3 million, a more modest growth rate of 4.5%.
From 2020 to 2026, Klarna is projected to add 35.2 million new users, growing at an average annual rate of 38.2%. However, the smaller percentage increases in the coming years indicate that Klarna, like the BNPL industry as a whole, is entering a phase of stabilization.
Challenges Facing Klarna
Intensifying Competition
The BNPL market has become increasingly crowded, with players like Affirm, Afterpay, and PayPal’s Pay in 4 competing aggressively for market share. Each of these platforms brings unique features, creating a need for Klarna to continually innovate to stay ahead.
Regulatory Scrutiny
As BNPL usage grows, regulators are paying closer attention to its impact on consumers. New rules requiring greater transparency, stricter credit checks, and clearer terms could increase compliance costs and potentially slow growth.
Economic Pressures
Rising interest rates and inflation could impact consumer spending. While BNPL offers flexibility, reduced discretionary income may affect demand for services like Klarna, especially for non-essential purchases.
Fraud and Misuse
Like other financial platforms, Klarna faces challenges related to fraud prevention. Ensuring secure transactions while maintaining a smooth user experience is an ongoing priority.
Opportunities for Klarna
Expanding Retail Partnerships
Klarna has opportunities to grow by partnering with small and medium-sized businesses, which represent a significant portion of the U.S. retail landscape. Expanding into underserved segments could further increase its market share.
International Expansion
While Klarna is well-established in the U.S. and Europe, entering emerging markets where BNPL is still developing could unlock significant growth potential.
Enhanced Financial Products
Klarna can deepen user engagement by offering additional financial tools such as savings accounts, cashback programs, and credit-building options. These features would enhance its value proposition and attract a broader audience.
Sustainable Shopping Initiatives
As sustainability becomes a key consideration for consumers, Klarna can differentiate itself by promoting eco-friendly brands and providing tools to help users make more sustainable choices.
How Klarna Stacks Up Against Competitors
Klarna’s consistent growth places it among the top BNPL providers globally, but competition remains fierce. Here’s how Klarna compares to its key rivals:
- Afterpay: Known for its simplicity and strong presence in Australia, Afterpay has been expanding rapidly in the U.S., particularly in fashion and beauty.
- Affirm: Popular for financing larger purchases, Affirm’s transparent pricing and flexible payment plans make it a strong competitor.
- PayPal’s Pay in 4: Leveraging PayPal’s trusted brand, this service offers a familiar alternative for users already comfortable with PayPal’s ecosystem.
Despite these challengers, Klarna’s focus on user experience, technology, and partnerships has helped it maintain a competitive edge.
From 14.1 million customers in 2020 to an expected 49.3 million by 2026, Klarna’s growth underscores its significant role in shaping the BNPL industry. While its growth rate is slowing, the platform’s ability to attract and retain users highlights the strength of its business model and the appeal of its services.
As the BNPL market continues to evolve, Klarna is well-positioned to adapt to new challenges and seize emerging opportunities. By expanding its offerings, entering new markets, and maintaining strong retail partnerships, Klarna can solidify its position as a leader in the digital payments space.
Klarna’s success serves as a reminder of the importance of innovation and customer-centric solutions in today’s eCommerce-driven economy. For businesses considering BNPL integration, Klarna’s track record makes it a compelling choice.
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