Is Klarna really going bankrupt and shutting down? This is what’s actually happening

TikTok is getting flooded with videos saying the payment service Klarna is shutting down, and people are going into panic mode.

The Swedish financial company lets you buy now and pay in 30 days at thousands of big retailers, or spread the cost over three months.

It has over 100 million users across the world, but is Klarna really going bankrupt and shutting down? Here’s everything that’s going on.

Is Klarna really going bankrupt?

No, Klarna is not going bankrupt. However, they are in a bit of financial trouble.

The rumours that the company was closing down come after the company announced really big losses in the first quarter of the year.

On Monday, the Financial Times reported that Klarna’s losses totalled to a whopping $99 million for the first three months of 2025. That’s over double the $47 million loss they had in 2024.

The losses have been caused by people borrowing money and not repaying it, and the company revealed that customer credit losses have risen to $136 million, a big 17% increase on last year.

@johnridgeway

Klarna is going bankrupt because people are financing GROCERIES & they also let people finance doordash orders LMAO 😩😭 #klarna #fyp #bankruptcy #xyzbca #doordash #trending #groceries #inflation #fypシ #credit #loan

♬ original sound – johnridgeway

So, is the company shutting down?

You’ll be happy to hear that Klarna has no plans of shutting down.

The company told the Financial Times they are “closely monitoring changes in the macroeconomic environment” and “remains well-positioned to adapt swiftly if required”.

It’s not all doom and gloom, because Klarna’s revenues in the first quarter still rose 13% from last year, to $701 million. They have also reduced their workforce by 40%, largely due to AI, so that’s saving money.

Klarna is in the middle of a big stock market deal, but they had to pause that last month after Trump’s new tariffs made caused chaos. So, that hasn’t helped the situation either.

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Unless Klarna says otherwise, nothing is changing about the company and your money is safe. Don’t believe everything you see on TikTok!

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