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  5. KLAR: Would these two be competitors? [Klarna Group plc]
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Q: Would these two be competitors? Does PRL have a competitive advantage over other financial institutions in their space? How do you see these two companies evolving? Who is the favourite for success 5 - 10 years hence?
Asked by Stephen on October 02, 2025
5i Research Answer:

KLAR is more tied to the 'buy now pay later' market than the 'loan to subprime consumer' market as PRL is. They might have similar customers but we would not view them as direct competitors. KLAR is a Swedish company and we do not follow it closely. It is much bigger, has $6.8B cash, and expected growth in the next three years is extremely high, higher than PRL if we look at consensus estimates. However it is also significantly more expensive than PRL, so there is a trade off. KLAR also has no dividend. Put for pure growth investors, we would side with KLAR.