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Klarna Scales Card to 5 Million Users, Deepens H&M Partnership
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Key Takeaways
Klarna reached 5M card users globally, highlighting the rapid adoption of its hybrid debit-BNPL offering.
Klarna expanded its H&M partnership into Romania and Hungary, boosting flexible payment access.
Klarna's global base boasts 118M users, with daily transactions at 3.4M and usage up 53% year over year.
Klarna Group plc (KLAR - Free Report) recently announced that its Klarna Card reached five million active users globally, signaling rapid adoption of its hybrid debit–BNPL product. The card lets users spend their own money while choosing to split payments when needed, and is now live across 16 countries.
Klarna also expanded its partnership with H&M into Romania and Hungary, bringing flexible payment options like pay-in-30-days and interest-free installments to more shoppers. This builds on an existing global relationship and taps rising demand for digital payments in newer European markets.
The card milestone reflects changing consumer behavior, users prefer flexibility without traditional credit card debt. A larger card user base increases transaction volumes and creates more opportunities to monetize through interchange fees, subscriptions and value-added services. At the same time, deeper merchant integrations like H&M strengthen Klarna’s ecosystem.
Last week, it also announced gaining traction in France, now reaching seven million users. On a global scale, Klarna’s footprint continues to expand to more than 118 million active users, and it processes 3.4 million transactions daily. It crossed 55 million monthly active app users in February 2026, while daily usage jumped 53% year over year to nine million users. Its merchant network grew 42% to 966,000 in the fourth quarter of 2025.
Klarna’s Peers in BNPL
Klarna faces rising pressure as competitors like Affirm Holdings, Inc. (AFRM - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) push harder into the BNPL market. Affirm, in particular, is building traction through higher transaction volumes, increasing repeat usage and a growing servicing income stream. In its latest quarter, gross merchandise volume rose 36% year over year to $13.8 billion, while card network revenues reached $73 million, up 26% from the prior year. PayPal continues to be a strong competitor with its wide global footprint spanning more than 200 markets. Its peer-to-peer and related segments are still delivering double-digit growth, supported by continued momentum in Venmo and its debit card offerings.
Klarna’s Price Performance, Valuation and Estimates
Shares of Klarna have plunged 55.8% in the year-to-date period, underperforming the broader industry’s 14.1% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, Klarna trades at a forward price-to-sales ratio of 1.02X, lower than the industry average of 4.73X. KLAR carries a Value Score of D.
The Zacks Consensus Estimate for Klarna’s 2026 and 2027 EPS is currently pegged at a loss of 12 cents and a profit of 80 cents, respectively.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
Klarna Scales Card to 5 Million Users, Deepens H&M Partnership
Key Takeaways
Klarna Group plc (KLAR - Free Report) recently announced that its Klarna Card reached five million active users globally, signaling rapid adoption of its hybrid debit–BNPL product. The card lets users spend their own money while choosing to split payments when needed, and is now live across 16 countries.
Klarna also expanded its partnership with H&M into Romania and Hungary, bringing flexible payment options like pay-in-30-days and interest-free installments to more shoppers. This builds on an existing global relationship and taps rising demand for digital payments in newer European markets.
The card milestone reflects changing consumer behavior, users prefer flexibility without traditional credit card debt. A larger card user base increases transaction volumes and creates more opportunities to monetize through interchange fees, subscriptions and value-added services. At the same time, deeper merchant integrations like H&M strengthen Klarna’s ecosystem.
Last week, it also announced gaining traction in France, now reaching seven million users. On a global scale, Klarna’s footprint continues to expand to more than 118 million active users, and it processes 3.4 million transactions daily. It crossed 55 million monthly active app users in February 2026, while daily usage jumped 53% year over year to nine million users. Its merchant network grew 42% to 966,000 in the fourth quarter of 2025.
Klarna’s Peers in BNPL
Klarna faces rising pressure as competitors like Affirm Holdings, Inc. (AFRM - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) push harder into the BNPL market. Affirm, in particular, is building traction through higher transaction volumes, increasing repeat usage and a growing servicing income stream. In its latest quarter, gross merchandise volume rose 36% year over year to $13.8 billion, while card network revenues reached $73 million, up 26% from the prior year. PayPal continues to be a strong competitor with its wide global footprint spanning more than 200 markets. Its peer-to-peer and related segments are still delivering double-digit growth, supported by continued momentum in Venmo and its debit card offerings.
Klarna’s Price Performance, Valuation and Estimates
Shares of Klarna have plunged 55.8% in the year-to-date period, underperforming the broader industry’s 14.1% decline.
From a valuation standpoint, Klarna trades at a forward price-to-sales ratio of 1.02X, lower than the industry average of 4.73X. KLAR carries a Value Score of D.
The Zacks Consensus Estimate for Klarna’s 2026 and 2027 EPS is currently pegged at a loss of 12 cents and a profit of 80 cents, respectively.
The stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.