Klarna’s monthly app user base crossed 55 million in February, representing 53% year-over-year growth driven by expanded retail partnerships and new consumer features. The surge underscores accelerating demand for the company’s payment solutions across key European and North American markets.

The company is evolving its business model from its core buy-now-pay-later offering toward a comprehensive digital banking platform, introducing features like savings accounts, personal loans and instant payments. This diversification aims to unlock higher-margin revenue streams and reduce reliance on transaction fees linked to BNPL.

Despite robust user growth, Klarna reported a $273 million net loss for full-year 2025, reflecting increased marketing spend and investments in product development. The sizable loss raises questions about the timeline for achieving breakeven and the effectiveness of its monetization strategy.