As economic uncertainty persists, the popularity of buy now, pay later (BNPL) services like Klarna and Affirm is surging, with consumers increasingly using these options for everyday purchases such as groceries and takeout. Partnerships with major brands are expanding the reach of these services, while critics warn of potential risks associated with consumer debt and delayed payments. Overall, this trend reflects a growing reliance on BNPL amid rising costs and inflation.

Klarna reported a 31% increase in active users and a 20% rise in revenue to $823 million in its second-quarter earnings, despite a growing net loss attributed to restructuring costs. The company, which paused its IPO earlier this year due to market volatility, is now preparing to move forward with the offering and has expanded its merchant partnerships, including with Walmart, Stripe, and eBay. Additionally, Klarna has received regulatory approval to operate as an electronic money institution in the UK and is rolling out a debit card for U.S. consumers.

Klarna has partnered with Visa to integrate debit cards with buy now, pay later (BNPL) options, following Affirm's lead in the U.S. fintech space. Both companies aim to revolutionize payment methods by offering a flexible, all-in-one solution that could reshape consumer banking relationships and challenge traditional banks.