“If you’ve been tracking the rise of Klarna in the ‘Buy Now, Pay Later’ [BNPL ]space, you’ll know all the rage in fintech IPO land. But the other question is: Which companies might succeed like Klarna did? Beyond learning to wallow through saturated markets and fluctuating valuations, we also found seven stealth-mode startups that we think are nailing Klarna’s playbook — enabling scalable tech and compliance — while building customer loyalty.
These incipient players are driving into new approaches around AI-based risk assessment, niche targeting, and Gen Z-focused ecosystems, and our 2025 watchlist highlights who will be a material public market impactor and why. Learn about their revenue strategies, plans for global expansion, and new trends, such as embedded finance, that promise to prime them for billion-dollar IPOs. If you are an investor, entrepreneur, or just curious, these companies are worth watching.”
Introduction: The Klarna Effect on Fintech IPOs :
Swedish-born Klarna, well known for the buy now pay later [BNPL] model, has skyrocketed in the Fintech industry, including Payment companies globally. Klarna has been a profitable company since its launch; it has expanded to 25 other countries, serving more than 150 million customers, 675,000 listed merchant partners, and more than 5000 employees working globally. Recently, Klarna has planned to go public by filing an IPO on the New York Stock Exchange worth $15B.
The news of Klarna filing an IPO started as a catalyst among fintech firms to avail themselves of the opportunity to raise funds by filing publicly on the New York Stock Exchange. Fintech giants such as Revolut, Stripe, Chime, and others are analyzing their strategies to mark their presence in the payment industry by filing a public offer and getting listed on the New York Stock Exchange. This article will unveil the top contenders and their valuations and explore BNPL’s worldwide space and future potential.
Klarna’s Strategy: A Blueprint for BNPL success
1. Klarna’s BNPL success strategy:
Klarna was the first payment company to innovate new ways for shoppers to replace credit cards with interest-free installments. Customers globally recognized the birth of the buy now, pay later model because it allows people to shop first and comfortably pay later in installments.
During its initial days in the US market, the company tried trial and error with many retailers and convinced them to add their payment gateway to its platform; soon, the number of merchants increased as they witnessed the potential value of innovative payment solutions. In the year 2024, Klarna reported a $21 million profit. In addition, Klarna increased its gross merchandise volume [GMV] in the US by 71% in 2024 compared to 2021.
These all show that mass retailers adopted payment practices that increased sales and reduced cart abandonment rates. They focused on tech-oriented millennials and Generation Z audiences and offered them a flexible and convenient way to shop and pay for products.
Later, BNPL’s leader launched Klarna’s App in 2019, which added another milestone to its success journey. By fulfilling customers’ shopping experiences with more innovative tools and enhancing their in-store experiences, BNPL broadened its customer list.
Today, Klarna has emerged as a conglomerate in the retail finance industry with its cutting-edge payment solutions technology. Klarna is growing rapidly, leaving its competitors far behind. Also, there is a massive acceptance in the market, and investors are confident, which leads to higher valuations and boosts their plans to go public by filing an IPO on the New York Stock Exchange.
2. Lessons for future IPO candidates:
Klarna was not alone in BNPL’s journey; Affirm launched in 2012, Zip in 2013, and After Pay in 2014 share the same industry space. Payment solution companies target Gen Z and millennials, as they are more inclined to shop when a BNPL payment is offered, and almost half would resist retailers who do not provide BNPL payments.
Most BNPL companies earn money by charging retailers a fee for each sale. Retailers agree to these fees because using BNPL often makes customers spend more and helps complete more sales. So, the BNPL territory is globally saturated with many heavily funded fintech giants; there will be some failures. However, the company that strongly built its strategic partnerships with high-value retailers will be the market leader.
Finally, the BNPL business will work more proactively to acquire strategic partnerships with as many retailers as possible. They will also build strong consumer loyalty as they help grow the business by cross-selling products. They will be the business leader in the retail payment industry and will shape the future of e-commerce businesses globally.
Top Fintech Contenders in the subsequent IPO wave:
Company Profiles: Leading Fintech Firms to Watch
1. Stripe: It was founded in 2010 and headquartered in San Francisco; it provides payment infrastructure solutions, including billing services and digital payment, to many fintech companies to cater to e-commerce businesses. Stripe uses API technology to provide service as a contract to e-commerce businesses by building an interface between two applications.
Many investors substantially fund Stripe and its valuation is currently around $90 billion; it makes him one of the top contenders to publicly file to float on the New York Exchange any time soon.
2. Chime: It is a Digital Banking Company, popularly known as Neobanking, founded in 2012 in San Francisco. It offers services through mobile apps and an online website.
According to the reports, Chime confidentially filed for an IPO and plans to go public in 2025. It is also rumored that its valuation is around $14.5 billion, which they have kept secret in talks.
3. Revolut: It is a Global Money App company founded in London in 2015. Revolut provides an innovative digital banking platform that can manage multi-currency accounts, international digital payments, digital currency exchange, and cryptocurrency and serve many other banking purposes.
During her recent funding rounds, Revolut was valued at $33 Billion. However, this figure can change over time due to new investments, market conditions, and strategic developments.
4. Plaid: Its platform is a secure API connecting users’ bank accounts to various financial applications. Its efficient API is a bridge to secure and smoothly process financial data access. Plaid ensures high compliance and encryption, supports thousands of banks globally, and drives innovation in open banking.
Plaid was founded in 2013 and has its headquarters in San Francisco. The last round of funding valued Plaid at around $13.4 Billion.
5. Circle: It specializes in Digital payment and blockchain technology and is well known for creating the USDC [USD Coin], a Stablecoin backed by USD.
Circle, founded in 2013 and headquartered in Boston, has raised multiple funding rounds and was recently valued at around $9 Billion.
6. Ripple: It is a Decentralized Global Payment Network used by banks and financial institutions. It uses blockchain technology for secure cross-border transactions. Ripple Labs also owns a digital asset called XRP, a cryptocurrency for international financial inclusion.
It was founded in 2012 and has its headquarters in San Francisco. Its network is spread over 40 countries and provides services to over 300 banks and fintech corporations. According to its recent funding rounds, it is valued at $11.3 B. Due to some legal issues with the SEC, it couldn’t file for an IPO but plans to list at some point in the future.
7. Airwallex : is a Global Financial Payment company that offers cross-border payment services for businesses and financial institutions. It also provides multi-currency accounts and bridge interfaces for payment APIs.
Airwallex was founded in 2015 and is headquartered in Singapore. Recently, the company has been funded and valued at $5.6 Billion. The company is focusing on global expansion, and recently, they have crossed $100 billion in year-to-year transactions worldwide. Soon, they are aligning themselves to go public by filing an IPO.
Future Outlook: BNPL Fintechs Expansion:
The fintech industry is evolving rapidly worldwide, and the Buy Now Pay Later (BNPL) sector is a prime example of this transformation. Digital transformation and easy installment payment models have encouraged consumers to shop more, driving increased sales and a significant gross merchandise value (GMV) rise. In 2024, the global BNPL market is valued at approximately $39 billion, with projections to reach around $200 billion by 2030. More than 170 fintech companies and startups dominate this space worldwide.
With the BNPL market rapidly expanding and competing, companies are integrating even more features into their offerings, such as personalized discounts, AI-based shopping suggestions, live spending insights, virtual payment cards, insurance, and even everyday banking. Such innovations are positioning BNPL providers as end-to-end financial ecosystems.
Additionally, by focusing on Millennial and Gen Z shoppers — customers who prefer flexible payment solutions — BNPL services allow consumers to buy now and pay later when it works for them. This aligns with increasing consumer expectations and paves the way for strong user loyalty.
Looking ahead, the future success of BNPL fintechs will largely depend on integrating strategic partnerships with quality merchants. Such collaborations will grant fintech companies access to thousands of active sellers, enabling them to expand their networks while providing retailers with improved sales methodologies.
By continually expanding and partnering with more retailers, BNPL providers can further dominate the market. These partnerships will give them a competitive advantage in the evolving financial landscape with innovative offers, targeted advertisements, and seamless payment methods.
Conclusion: The Road Ahead for Fintech IPO’s and BNPL Dominance
Klarna’s IPO story adds another trophy to the cabinet and an alarm call for the entire fintech world. By incorporating innovative payment solutions in the BNPL model, Klarna proved how integrating technology advancement with strategic partnerships can win over millions of shoppers, especially younger generations. Now, other fintech startups are racing to follow its lead.
Companies like Stripe, Chime, Revolut, Plaid, Circle, Ripple, and Airwallex are next in line, each with unique strengths. Stripe’s payment tools, Revolute’s multi-currency apps, or Airwallex’s global payment networks—these firms are primed to go public, which will boost trust among the investors who funded their growth with significant investments, also expanding their customer base and market reach.
The BNPL model is disrupting the retail payment market; the total global BNPL payment market will be around $560.1 billion in 2025. It is inviting many competitors, backed by substantial investors, to take advantage of momentum and make the market more crowded for others.
To stay ahead, fintech needs to keep innovating—think AI-powered shopping tips, instant payment options, and teaming up with big retailers. The more stores offer BNPL, the more shoppers will stick around, boosting sales for everyone.
For Fintech companies, going public is like a big stamp of approval—it shows the world that the company has a long-term vision, quality value to offer, and profound management ready to adapt to changing trends.
Those focusing on user-friendly features, secure tech, and strong retailer ties will likely thrive. As Klarna paves the way, the 2025 IPO wave could redefine how we shop, pay, and manage money worldwide—making finance more straightforward, faster, and fairer for all.
FAQ’s
- Why is Buy Now, Pay Later (BNPL) appealing to younger shoppers?
– BNPL allows shoppers to break up payments into no-interest installments, making pricier goods feel more attainable. Younger generations, like Millennials and Gen Z, enjoy shopping without credit card orders. Retailers reap the benefits, too: BNPL reduces cart abandonment and drives sales by providing a payment option consistent with how younger audiences want to manage their money.
2. Which fintech companies are likely to go public IPO in 2025?
There are seven startups to watch: Stripe (payment tools), Chime (digital banking), Revolut (multi-currency apps), Plaid (bank-account linking), Circle (stablecoin tech), Ripple (blockchain payments), and Airwallex (cross-border solutions). These firms are growing like crazy, supported by booming valuations and plans to file their IPOs, emulating Klarna.
3. What impact has Klarna’s success had on other fintech companies?
– Klarna’s IPO plans and BNPL dominance have encouraged rivals to rethink their strategies. Companies are focused on partnerships with retailers, user-friendly tech, and targeting younger shoppers. Klarna showed that innovation such as instant payment options could [be] coupled with retail collaboration to drive growth — the formula others are looking to emulate.
4. The future of BNPL fintech: What challenges might BNPL fintechs face?
Though the BNPL market is booming, challenges come from growing competition, regulatory scrutiny (such as Ripple’s legal troubles), and a need to innovate constantly. To stay competitive, businesses must partner with the best retailers, add features such as AI-powered shopping tools, and offer safe, reliable payment experiences to retain customer loyalty.
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Sources:1. https://news.crunchbase.com/public/venture-backed-fintech-startups-ipo-candidates-klarna/
3. https://www.netguru.com/blog/future-bnpl-payments
4. https://www.reuters.com/technology/klarna-ipo-filing-spurs-hope-british-fintech-listings-2025-03-24/
5. https://www.investopedia.com/five-things-to-know-about-bnpl-provider-klarna-ahead-of-ipo-11701015
6. https://wellfound.com/job-collections/50-hot-consumer-fintech-startups
