BNPL, Business of Fintech, Member Exclusive

With BNPL mainstream, Klarna shifts its focus to better economics

  • Flexible payments have become table stakes at checkout. For BNPL providers, the next challenge is finding growth beyond the product itself.
  • Klarna's latest moves suggest the company wants to give customers a reason to return even when they aren't making a purchase.
close

Email a Friend

With BNPL mainstream, Klarna shifts its focus to better economics

Some fintechs face a nice-to-have problem where acquiring the next customer is no longer the hardest challenge. Instead, the bigger challenge is keeping customers engaged and finding new ways to monetize those relationships.

Klarna is among them. In quick succession, the Swedish fintech applied for a U.S. bank charter, expanded into everyday mobility payments, embedded financial wellness tools into its app, and secured a landmark antitrust victory through its Swedish subsidiary, PriceRunner.

After spending the better part of a decade building one of the world’s largest BNPL businesses, Klarna is now focused on improving the economics of every existing customer relationship. Its strategy is to lower funding costs, increase engagement between purchases, and create new ways to monetize the millions of consumers already in its network.

BNPL built Klarna’s scale – now the company is focused on maximizing the value of that scale.

BNPL is now table stakes. That changes the growth equation and brings the focus to customer relationships.

Flexible payments are increasingly an expected part of the checkout experience rather than a point of differentiation. Recent research found that 43% of consumers abandon a purchase when BNPL isn’t available, while 42% switch to a lower-cost alternative. BNPL still influences conversion, but the competitive edge is increasingly shifting toward how seamlessly financing fits into the broader shopping journey and what happens after the purchase is complete.

For companies built on BNPL, that creates a new challenge. Once the product becomes commonplace, growth has to come from somewhere else.


0 comments on “With BNPL mainstream, Klarna shifts its focus to better economics”

10-Q, Member Exclusive

Forget the earnings. Watch where these fintechs are placing their bets.

  • Chime, Block, and Circle each used the quarter to make the case for where fintech’s next moat will be built.
  • Chime is finding a lending advantage in the direct-deposit relationship, Block is rebuilding around AI, and Circle is betting that the bigger opportunity lies in owning the infrastructure beneath stablecoins.
Sara Khairi | August 10, 2026
Member Exclusive, Opinion

Have we mistaken ChatGPT-like LLMs and AI agents for the whole transformation?

  • The industry is increasingly asking: What needs to surround AI before we can trust it?
  • AI needs four things to work well in financial services: data, context, governance, and human oversight. The first two sharpen its intelligence; the latter two make it trustworthy.
Sara Khairi | August 07, 2026
Banking, Member Exclusive

How banks have stopped thinking in products and started thinking in customer journeys

  • As banks weave AI into their customer experiences, many are looking for ways to translate years of customer data into a more complete picture of each customer's needs and context.
  • The difference isn't the data itself, but how well a bank makes sense of a customer's context and goals and builds the right response around that.
Sara Khairi | August 06, 2026
Artificial Intelligence, Banking, Data, Member Exclusive

Before chasing AI, Bank of America wants banks to fix their data first

  • Bank of America has resisted the urge to use AI as a shortcut to efficiency, a temptation that has driven many companies into expensive and poorly conceived AI investments.
  • EricaAssist offers the clearest example of Bank of America's data-first AI strategy, with the bank recently enhancing the employee assistant by integrating Gen AI capabilities.
Javarya Kamran | August 06, 2026
AI Innovation, Member Exclusive, Payments, Podcasts

Mastercard’s Marc Pettican on the road to a $17.4 trillion virtual card market

  • Mastercard projects virtual card spend will hit $17.4 trillion by 2029, and Marc Pettican explains what's fueling that growth.
  • He details Mastercard's push into agentic payments, embedded finance, and a multi-rail strategy spanning cards, account-to-account, and stablecoins.
Zack Miller | August 05, 2026
More Articles