Affirm Stock Drops as Klarna's IPO and Afterpay's Expansion Shake Up BNPL

Klarna's IPO and Afterpay's expansion into Cash App put pressure on Affirm, shaking up the buy now, pay later market

Mar 17, 2025

Summary

Affirm’s stock drops more than 9% premarket as Klarna files for IPO and Block expands Afterpay into Cash App, intensifying BNPL competition

Affirm Holdings (AFRM, Financial) is feeling the heat. Shares dropped more than 9% in Monday's premarket trading after Klarna (KLAR) filed for a U.S. IPO, giving investors another buy now, pay later (BNPL) stock to consider. At the same time, Block (XYZ, Financial) expanded its Afterpay pay-over-time financing into its hugely popular Cash App, ramping up competition in the space.

Klarna's public debut could shake things up, offering a fresh alternative in the BNPL sector. Meanwhile, Block's move to further integrate Afterpay, which it acquired in 2022, shows it's doubling down on installment payments.

Affirm's stock has already had a rough ride, plunging 38% over the past month, while Block is also down 32%. With Klarna stepping into the U.S. market and Afterpay growing its reach, the BNPL battle is only getting tougher.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure

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