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. In fact, a Klarna spokesperson told The Tab the company is actually very “financially healthy”.

The rumours that Klarna is 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.

People instantly assumed these losses were caused by people not paying back their loans, but that’s not actually true.

Klarna is in the middle of a big stock market deal called an IPO, but they had to pause that last month after Trump’s new tariffs caused chaos – and that’s the main reason for the losses.

“The main reason we made a loss was a one-time share payment to employees related to the IPO, not credit losses. Excluding this payment, depreciation and restructuring costs, Klarna made an adjusted operating profit of $3m for the quarter,” the company told The Tab.

Customer credit losses (people not paying Klarna back) have also risen to $136 million, a big 17% increase on last year. However, that’s just because they had more customers and made more loans.

Most Read

Police release statement after influencer Emilie Kiser’s son tragically drowns in pool

Bonnie Blue has been ‘arrested’ as her sister posts statement and dramatic footage

Diddy’s heinous one-word whisper to his lawyer caught on the courtroom mic

“Bear in mind that we made 13% more loans than a year ago so, all else being equal, you’d expect credit losses to increase by at least 13%,” the spokesperson added.

The percentage of loans that aren’t paid back to Klarna actually remained stable and rose only slightly from 0.51% to 0.54% between early 2024 and 2025.

So, while these losses sound pretty disastrous for the company – they’re actually not.

@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. Plus, they are still waiting for the stock market deal to go through.

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

For all the latest MAFS news, scandals, gossip and updates – like The Holy Church of MAFS on Facebook.