Why Are Investors Paying Attention To Klarna Stock Today?

by | Jan 12, 2026 | General

Shares of Klarna Group PLC (NASDAQ:KLAR) are trading lower Monday after a weekend comment from President Donald Trump about capping credit card interest rates at 10% for a year.

Trump Says The American Public Is Being ‘Ripped Off’

Trump posted on Truth Social that the interest rate cap would begin on Jan. 20, but he did not mention whether the directive would be made official through an executive order. In his post, he said the American public was being “ripped off” by credit card companies charging interest rates of 20% to 30%.

According to the Federal Reserve Bank of New York’s Center for Microeconomic Data, total household debt reached $18.59 trillion in the third quarter last year, with credit card balances rising by $24 billion from the previous quarter.

Why It Matters For Klarna

Klarna, which is based in Sweden, allows users to purchase goods and services using installment-based payment plans, sometimes at an interest rate of 0% in addition to a service charge. The company went public last September, and the stock has lost a quarter of its value since.

A proposed 10% cap on credit-card interest rates could indirectly benefit buy now, pay later providers like Klarna, even if it doesn’t apply to them directly. A hard APR ceiling would likely pressure traditional card issuers to tighten lending standards, particularly for subprime and near-prime consumers, pushing more shoppers toward installment-based alternatives at checkout.

Despite surging in early trading, Klarna shares were trading lower at last check. Investors are likely reacting to near-term policy uncertainty and the risk that buy now, pay later companies could face similar scrutiny.

Industry data suggests buy now, pay later demand remains strong. Total buy now, pay later spending during the holiday season was projected to reach $20.2 billion, up 11% year over year, according to data from Adobe Analytics.

Klarna Stock Is Volatile

Price Action: Klarna shares initially traded higher on Monday, climbing to around $33.10 before pulling back. The stock was down 2.83% at $30.61 at the time of publication, according to Benzinga Pro.

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