Klarna’s IPO underscores what we’ve long believed: Buy-Now-Pay-Later is not a passing trend, but a durable, growing financing solution that benefits every participant in the ecosystem. Retailers gain sales, consumers access more seamless and transparent options, and lenders open the door to a new, attractive growth segment, BNPL.

At Pagaya, we’re proud to be helping this category scale responsibly. Our AI-driven underwriting products and diversified capital network are enabling BNPL providers to reach more consumers, expand their offerings, and do so in a responsible and sustainable way.

We believe BNPL will remain a critical part of the future of consumer finance — one that is embedded, data-rich, and better aligned with the needs of today’s buyers and merchants.

As Sanjiv Das says in this American Banker article:

“BNPL and point-of-sale financing are expanding at double-digit rates annually, well beyond trend status. At Pagaya, we’ve facilitated over $1.4 billion in originations and launched the AAA-rated POSH ABS shelf - clear evidence of institutional demand for this asset class.”

Read more here.