Klarna Group plc (NYSE:KLAR) shares are up during Tuesday’s trading session as the company has reached a significant milestone by surpassing 1 million merchants globally.

Rapid Adoption Drives 47% Annual Growth

Klarna has reported a 47% increase in the number of merchants using its payment methods over the past year, adding 285,000 merchants in 2025 and more than 115,000 in the final quarter alone.

The Leisure, Sport & Hobby category has emerged as the fastest-growing segment, with a remarkable 91% year-over-year growth in February 2026, reflecting growing consumer demand for flexible payments in wellness and fitness.

David Sykes, Chief Commercial Officer at Klarna: “Home repairs, a new couch, salon appointments, gym memberships – these are facts of life for most people, but the way they pay for them hasn’t kept up.”

“Reaching 1 million merchants is a reflection of how deeply embedded Klarna is becoming in everyday money management, and the acceleration across verticals and markets shows no signs of slowing down,” Sykes added.

Klarna Boasts 118 Million Active Users

The digital bank and flexible payments provider boasts over 118 million active users and facilitates approximately 3.4 million transactions daily, indicating strong consumer demand for its flexible payment solutions.

This expansion positions Klarna well to convert its growing merchant network into sustainable revenue growth.

Last week, Klarna’s Board Chair, Michael Moritz, made a significant purchase of shares, indicating strong insider confidence.

Klarna Technical Analysis

The stock is currently trading 2.9% above its 20-day simple moving average (SMA) but is 28.9% below its 50-day SMA and 44.3% below its 100-day SMA, indicating a struggle to maintain upward momentum in the longer term.

Shares have decreased by 67.46% over the past 12 months and are currently positioned closer to their 52-week lows than highs.

The RSI is at 42.07, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold.

Meanwhile, MACD shows a value of -1.6061, with the signal line at -2.2446, indicating bullish momentum as the MACD is above the signal line.

The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating potential for upward movement if market conditions remain favorable.

  • Key Resistance: $21.50
  • Key Support: $12.50

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $40.27. Recent analyst moves include:

  • JP Morgan: Overweight (Lowers Target to $20.00) (Feb. 20)
  • UBS: Buy (Lowers Target to $20.00) (Feb. 20)
  • Wells Fargo: Overweight (Lowers Target to $32.00) (Feb. 20)

KLAR Price Action: Klarna shares were up 0.54% at $14.99 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo by Robert Way via Shutterstock