Klarna Group Plc shares dropped below their IPO price due to increased competition and concerns over interest rates. Klarna’s stock closed at $39, below the $40 listing price. Fintech stocks like Klarna are sensitive to interest rates and regulatory factors. Peers Affirm Holdings Inc. and Block Inc. also saw weak performance.

Valuations of competitor fintech firms have been rising, putting pressure on Klarna. Stripe Inc. is valued at $106.7 billion, Revolut Ltd. at $75 billion, and Checkout.com at $12 billion. Klarna’s CEO faces pressure as the stock retreats from its debut price. The company is expanding its “fair financing” product, impacting results.

Klarna, a hot US IPO, has seen its buzz fade as the stock declines 13% from its debut price. The company faces competition from rising valuations of competitors. CEO Sebastian Siemiatkowski is under pressure to perform. Klarna’s focus on “fair financing” has impacted results with larger provisions for potential credit losses.

Read more at Yahoo Finance: Klarna Sinks Below IPO Price as Fintech Competition Heats Up