Klarna and Affirm Enjoy a Strong Week in the Market

December 29, 2024February 6, 2025 EquityExplained

In this week’s episode of The Interchange, we’re diving into the hottest fintech news from the previous week. If you want to receive The Interchange directly in your inbox every Sunday, head here to sign up!

Table of Contents

Buy Now, Pay Later Comeback

Both Klarna and Affirm, known primarily for their buy now, pay later businesses, revealed their quarterly results this week. And they did not disappoint.

Affirm’s Quarterly Results

Affirm reported that its fiscal first-quarter revenue grew 37% year over year to $497 million as gross merchandise volume increased 28% to $5.6 billion during the same period. Its stock got a big boost as a result, climbing as high as $27.16 on November 9. It lost some of those gains on November 10, though, and was trading just over $25.

Klarna’s Quarterly Results

Klarna reported that its revenue grew by 23% year-over-year to SEK 2.5 billion (approximately USD 260 million). The company also mentioned that it had seen a significant increase in the number of users on its platform, with a growth rate of over 50%.

The Rise of Buy Now, Pay Later

The buy now, pay later model has been gaining popularity in recent years, especially among younger consumers. This model allows customers to purchase products online without paying for them upfront, instead choosing to split the cost into smaller installments.

The Benefits of Buy Now, Pay Later

Buy now, pay later services offer several benefits to consumers, including:

Flexibility: Customers can choose to pay for their purchases in smaller installments over time.
No Interest Charges: Many buy now, pay later services do not charge interest fees.
Convenience: Customers can make purchases online without having to worry about upfront costs.

Funding and M&A

Here are some of the latest funding and M&A news in the fintech space:

Enable Raises $1B

Enable, a platform for managing B2B rebates, has raised $1 billion in new funding. The company plans to use the funds to expand its offerings and improve its technology.

Volante Raises $66M

Volante, a payments tech company that specializes in serving banks and other legacy financial businesses, has raised $66 million in new funding. The company plans to use the funds to continue developing its platform and expanding its reach.

Funding and M&A News

Here are some of the latest funding and M&A news in the fintech space:

Funding and M&A

Enable, a platform for managing B2B rebates, has raised $1 billion in new funding.
Volante, a payments tech company that specializes in serving banks and other legacy financial businesses, has raised $66 million in new funding.

Conclusion

In conclusion, the fintech industry is seeing significant growth, with companies like Affirm and Klarna reporting strong quarterly results. The buy now, pay later model continues to gain popularity among consumers, and we’re seeing a rise in funding and M&A activity in the space.

About The Interchange

The Interchange is a weekly newsletter that covers the latest news and trends in the fintech industry. If you want to receive The Interchange directly in your inbox every Sunday, head here to sign up!

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