Summary:
The Klarna Card has been successful in normalizing buy now, pay later (BNPL) and attracting more customers in Q3. Despite criticisms of BNPL being unsustainable, Klarna’s data shows a different story. Klarna Group (NYSE: KLAR) continues to generate demand as people opt for small payments over time. Although the stock market performance has been down, Klarna’s positive results in the third quarter indicate growth potential. The Klarna Card has gained popularity, surpassing 1 million sign-ups in the U.S. and contributing to a 51% surge in U.S. revenue. Klarna remains a promising growth stock for investors.

Demand for the Klarna Card is accelerating, with 4 million new sign-ups in four months and over 850,000 retailers enabling BNPL purchases. The company’s third-quarter results were positive, with revenue increasing by 28% year over year. Klarna’s 114 million global active users and 27 million new users added in the quarter set the stage for further growth. Klarna’s efforts to reach new users have been successful, with the company expecting to exceed $1 billion in fourth-quarter revenue.

Some critics argue that the BNPL industry may collapse due to financial vulnerabilities and debt accumulation. However, Klarna’s data shows a 99% repayment rate globally and strict eligibility assessments before purchases. The company’s use of artificial intelligence helps mitigate risks. Klarna’s impressive results and growth potential suggest that the BNPL industry’s sustainability concerns may be unfounded. The company continues to deliver strong performance and remains a promising growth stock for investors.

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