Klarna has made its long-anticipated stock market debut in New York, securing a valuation of around $15.1bn (£11.1bn) and raising $1.37bn (£1bn) from investors. The buy now, pay later (BNPL) pioneer priced its initial public offering (IPO) at $40 (£29.50) a share, above its expected range, in one of the year’s biggest listings.

The Swedish fintech, founded in 2005, has grown into a global player in consumer finance, offering flexible payment options to more than 111 million customers. Its services are embedded at checkouts for retailers such as John Lewis, Asos, Argos, Ticketmaster and Booking.com, enabling shoppers to delay or spread payments.

While demand for BNPL services has surged, Klarna and its rivals – including Clearpay and US-listed Affirm – have come under increasing regulatory scrutiny. Critics warn the model encourages unregulated borrowing and can lead to mounting debt. The UK is set to introduce tighter rules next year aimed at protecting shoppers.

Klarna offers instalment-based credit as well as longer-term financing with interest, with missed payments potentially resulting in late fees or debt collection.

Despite concerns, investors showed confidence in Klarna’s growth prospects, with the IPO pricing at the top of its expected range. The listing puts the fintech in the same league as other high-profile debuts this year, including software firm Figma and Circle Internet Group, a payments technology provider.

Sebastian Siemiatkowski, Klarna’s chief executive and co-founder, described the milestone as “a statement” of the company’s ambition. In a message to staff, he wrote: “Going public in New York is huge. It’s not just a milestone; it’s fuel for us to keep disrupting, keep innovating, and keep making life easier for millions of people.”

The listing will be closely watched by other European tech firms considering a US float, particularly amid a slowdown in IPO activity in London. Klarna’s success could encourage other fintechs to tap US capital markets for growth funding.