The news: Klarna’s revenues soared 28% YoY to $903 million, per its Q3 2025 earnings report. Gross merchandise volume (GMV) jumped 23% YoY, powered by strength in the US—where GMV cracked 43% growth YoY. Interest-bearing US loans accounted for over 244% of US GMV growth.

The Klarna Card notched 4 million signups since its debut in July, accounting for 15% of global transactions in October.

Klarna anticipates Q4 2025 to produce even stronger results: Estimated GMV is around $38 billion; revenues are expected to crack $1 billion.

Why this matters: Klarna’s strategy in the US is taking shape. The Klarna Card’s rapid takeoff stateside—card GMV growth surged from 51% YoY last quarter to 92% YoY in Q3—is directly challenging the Affirm Card’s dominance, even after Affirm’s two-year headstart. 

In the earnings call, CEO Sebastian Siemaitkoski claimed that the Klarna Card’s 3.2 million global active card users, including 1.4 million in the US, now outstrip one of its main competitors. On average, cardholders spend $130, four times more than non-cardholders—though that’s still well shy of Affirm’s cardholders, at $276, per Q4 2025 numbers.

Interest-bearing products: Klarna has also leaned into what it calls Fair Financing loans, giving consumers more choice at checkout for financing over longer terms. More than 150,000 merchants now offer these loans to shoppers—triple the rate available over the past two years. However, this still only accounts for 20% of Klarna’s merchant network, something the fintech hopes to increase rapidly over the coming quarters.

Our take: Klarna’s blueprint for US consumers is connecting—for now.

Younger, credit-averse consumers may be drawn to the Klarna Card’s debit-forward approach, but it still lacks a rewards structure compelling enough to pull consumers away from credit cards. While its membership rewards model did net 1 million signups in less than a month, issuers still face little threat from this card unseating their offerings.