Klarna Passes 1 Million Merchants as BNPL Expansion Accelerates 47% Year Over Year

March 22, 2026 – The Swedish fintech’s merchant network doubled its growth rate. Daily app users surged 53%. Yet profitability remains elusive as the stock trades 77% below its 52-week high.

A Seven-Figure Merchant Milestone

Klarna’s global merchant network has officially crossed the one-million mark. The Swedish fintech announced the milestone on March 17, 2026. This represents a 47% increase from the prior year. In absolute terms, 285,000 new merchants joined during 2025. More than 115,000 signed on in Q4 alone.

The acceleration reflects deepening partnerships with payment processors. Klarna recently expanded its European card network through an agreement with Marqeta. This broadened access to in-store and online checkout integrations.

David Sykes, Klarna’s chief commercial officer, noted that the company is embedding itself in everyday spending. He pointed to categories like home repairs, gym memberships, and salon visits. The leisure, sports, and hobby category grew fastest at 91% year over year.

Figure 1: Klarna merchant base trajectory from Q4 2023 to Q1 2026.

Revenue Surges, but Profitability Lags

Klarna reported full-year 2025 revenue of $3.5 billion, up 25% from 2024. Its Q4 revenue of $1.08 billion marked the first billion-dollar quarter in company history. Gross merchandise volume reached $127.9 billion for the year, a 22% rise.

Despite top-line strength, profitability remains a challenge. The adjusted operating profit stood at just $65 million. Earnings per share for FY2025 came in at-$0.79. Investors reacted sharply. Klarna’s stock (NYSE: KLAR) trades near $13.41, down roughly 77% from its 52-week high of $57.20.

User engagement paints a brighter picture. Daily active app users climbed 53% to 9 million. Monthly active users reached 55 million globally. Total active consumers hit 118 million, up 28%. Banking users who adopted cards, savings, or financing grew 101% to 15.8 million.

Figure 2: Year-over-year growth across Klarna’s key performance indicators.

BNPL Market Tailwinds and Regulatory Headwinds

Klarna’s expansion comes amid a broader BNPL boom. Fortune Business Insights values the global BNPL market at $44.89 billion in 2025 by provider revenue. The firm projects a 23% compound annual growth rate through 2034, reaching $286 billion.

North America leads with 56.1% market share. The U.S. BNPL market alone is forecast to reach $111.6 billion in transaction value by 2026. However, regulatory scrutiny is intensifying. Australia plans to classify BNPL as regulated credit by 2026. EU and U.K. authorities are pushing for mandatory credit bureau reporting.

Consumer behaviour is also shifting. A PYMNTS Intelligence report found that 31% of consumers used credit card installments in January, versus just 12% who used BNPL. Speed and instant approval drive 43% of BNPL users. Credit management motivates 34.2% of installment plan users.

Figure 3: Global BNPL provider revenue forecast, 2024–2030.

The Bottom Line

Klarna’s merchant milestone signals a shift from niche checkout tool to embedded financial platform. The company now processes 3.4 million transactions daily across 118 million users. Its AI-driven cost discipline has cut operating expenses by 8% since Q4 2022, while revenue doubled.

Yet the gap between growth and profitability keeps investors cautious. The stock’s 77% decline from its peak reflects the market’s demand for margin expansion. Klarna projects margin improvements in transactions in late 2026. Whether that arrives fast enough will define the next chapter.