Klarna vs PayPal Business Model (2026)
Klarna earns most from Transaction revenue (59.9%), while PayPal earns most from Transaction revenue (89.8%). Computed from Klarna 20-F FY2025 and PayPal 10-K FY2025.
Last checked 2026-10-18 on the official pages.
Klarna
Amounts in millions of USD. Shares are computed from the filing.
| Revenue line | Value | % of total | Filing |
|---|---|---|---|
| Transaction revenue | $2,103 million ($2.1 billion) | 59.9% | 20-F FY2025 ↗ |
| Consumer service revenue | $397 million | 11.3% | 20-F FY2025 ↗ |
| Gain on sale of consumer receivables | $73 million | 2.1% | 20-F FY2025 ↗ |
| Interest income | $937 million | 26.7% | 20-F FY2025 ↗ |
| Total revenue | $3,509 million ($3.5 billion) | — | 20-F FY2025 ↗ |
PayPal
Amounts in millions of USD. Shares are computed from the filing.
| Revenue line | Value | % of total | Filing |
|---|---|---|---|
| Transaction revenue | $29,798 million ($29.8 billion) | 89.8% | 10-K FY2025 ↗ |
| Other value-added services | $3,374 million ($3.4 billion) | 10.2% | 10-K FY2025 ↗ |
| Total revenue | $33,172 million ($33.2 billion) | — | 10-K FY2025 ↗ |
Shared business models
Company and model pages
Klarna: Interest and banking · Payments network
PayPal: Payments network
Frequently asked questions
How does Klarna make money?
Klarna makes money mainly from Transaction revenue. Its FY2025 total revenue was $3,509 million ($3.5 billion), with Transaction revenue the biggest disclosed revenue line at $2,103 million ($2.1 billion) and 59.9% of total revenue (computed from the 20-F FY2025). Klarna earns merchant fees when consumers pay, and interest when they spread payments over time.
How does PayPal make money?
PayPal makes money mainly from Transaction revenue. Its FY2025 total revenue was $33,172 million ($33.2 billion), with Transaction revenue the biggest disclosed revenue line at $29,798 million ($29.8 billion) and 89.8% of total revenue (computed from the 10-K FY2025). PayPal earns fees for completing payments and providing related services.