Do we like Klarna?
Buy-now-pay-later and payments app for shoppers and retailers, based in Stockholm, Sweden.
Our score: 5 out of 10. Popular and convenient, but it has been fined for weak money-laundering controls, faces an investor lawsuit and lends to people who may struggle. We'd hold back.
Klarna is a Stockholm company that lets you buy now and pay later. It listed on the NYSE on 10 September 2025, in the biggest Swedish IPO since Spotify, according to Reuters. Co-founder Sebastian Siemiatkowski is still CEO and owns about 7%.
Regulators haven't always been kind. Sweden's financial watchdog fined it about 500 million kronor in 2024 over money-laundering failings, citing significant deficiencies in its risk assessment. Earlier, a court cut a GDPR fine over data protection shortcomings from 7.5m to 6m kronor but still upheld it.
On jobs, Klarna said AI would let it do much more with fewer people. Its filings showed staff falling from 5,527 in 2022 to 3,422 in 2024, mostly through a hiring freeze and attrition. The CEO later admitted it went too fast and the company is hiring people again.
In January 2026 a shareholder filed a class action in New York. It alleges the IPO documents were misleading about credit risk. That is only an allegation. Overall it's a mixed bag, so we land in the middle.