Klarna seeks growth beyond buy now, pay later with IPO

Buy now, pay later firm Klarna, which is valued around $16 billion after its IPO, seeks growth as it expands beyond its signature product.

These days, more people are tapping into buy now, pay later plans for everything from clothes to concert tickets.

How it works: In many cases, people take out small loans, which carry no interest and are paid back in increments over brief periods of time.

“I think it makes it better for consumers because it’s an option to where, if something happens, I have an easy access to purchase something,” Randis Dennies, of Memphis, Tennessee, told NBC News.

He said he uses the payment method for groceries, airfare and other purchases. His buy now, pay later company of choice? Klarna.

Traders prepare for the initial public offering of Klarna, at the New York Stock Exchange on Wednesday.Spencer Platt / Getty ImagesFounded in Sweden two decades ago, Klarna made its U.S. stock market debut Wednesday with an offering it had delayed earlier this year. After the closing bell Friday, its value stood at around $16 billion. (Rival Affirm has a market capitalization of more than $27 billion; PayPal's is nearly $64 billion.)