Klarna Replaces Affirm as Walmart's Exclusive BNPL Partner

Swedish fintech company Klarna has replaced Affirm as Walmart's exclusive buy-now-pay-later (BNPL) provider in the United States. This strategic move comes as Klarna prepares for its anticipated initial public offering (IPO) on the New York Stock Exchange.

The partnership with the retail giant is a significant win for Klarna as it expands its U.S. market presence. Affirm, which had served as Walmart's BNPL partner since 2019, now loses one of its most prominent clients. The change has already impacted Affirm's stock price.

Klarna's Expansion and IPO Preparations

Founded in 2005, Klarna has grown into a major global BNPL player with over 150 million users across 26 countries. Recent financial results, including a 24% revenue increase to $2.81 billion in 2024 and a net profit of $21 million, indicate strong growth. Klarna aims to raise over $1 billion in its IPO, with a potential valuation exceeding $15 billion.

New Walmart Partnership Dynamics

Through its collaboration with Walmart, Klarna is integrating its service via the OnePay payment solution and Walmart's own fintech app. This allows customers to split purchases into installments for up to 36 months, both online and in-store. Walmart is expected to benefit from an enhanced customer experience and broader payment options.

BNPL Market Landscape

The BNPL sector is highly competitive, and Klarna is seeking to solidify its position, particularly in the U.S. This deal with Walmart marks a pivotal step in Klarna's global growth strategy, showcasing its capacity to secure high-profile partnerships and potentially leverage AI for operational efficiencies.