Dublin, Feb. 03, 2026 (GLOBE NEWSWIRE) — The “Sweden Buy Now Pay Later Business and Investment Opportunities Databook – 90+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics – Q1 2026 Update” report has been added to ResearchAndMarkets.com’s offering.
The BNPL payment market in Sweden is expected to grow by 9.3% on annual basis to reach US$6.13 billion in 2026. The buy now pay later market in the country has experienced robust growth during 2022-2025, achieving a CAGR of 14.9%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 7.3% from 2026-2031. By the end of 2031, the BNPL sector is projected to expand from its 2025 value of USD 5.60 billion to approximately USD 8.71 billion.
Over the next 2-4 years, competition will shift from checkout visibility to compliance strength, underwriting efficiency and the ability to integrate BNPL across channels. Banks are expected to gain share in higher-value segments, while Klarna, Qliro and Walley will continue to anchor retail-focused instalment services. Growth will be steady but shaped by regulatory oversight, favouring players with scale, capital efficiency and established merchant networks.
Current State of the Market
- BNPL in Sweden operates within a mature invoice-based payment culture, with coverage across most ecommerce categories and increasing availability at physical retail. Klarna remains the dominant provider, supported by widespread merchant integration and app-driven engagement. Qliro, Walley (by Collector), and Svea complement the market through retailer-linked BNPL and invoice services, especially in electronics, home goods and fashion.
- Banks have strengthened their presence by embedding instalments into card products, giving consumers regulated alternatives. Competitive intensity has increased as retailers diversify the payment options presented at checkout and regulators scrutinise how BNPL is displayed and marketed.
Key Players and New Entrants
- Klarna maintains the strongest share in Sweden through deep retailer penetration and expanded payment functions. Qliro continues to support large merchants such as CDON and Nelly, while Walley remains integrated with Nordic retailers across home improvement and lifestyle. Banks, including SEB and Swedbank, are scaling card-linked instalments via mobile banking interfaces.
- New competition arises from merchant acquirers and PSPs that increasingly embed instalment capabilities into the checkout, strengthening the position of platforms such as Adyen and Stripe. No major new standalone BNPL entrants have emerged in the last year, reflecting regulatory tightening and high market-entry barriers.
Key Trends and Drivers
Expansion of invoice-based BNPL into regulated, affordability-driven models
- Sweden’s BNPL market is evolving from its long-established invoice model, popularised by Klarna, towards products structured around stricter affordability checks and clearer disclosures. Klarna’s 2024 updates emphasised strengthened risk assessments and repayment transparency in Sweden following government guidance on consumer credit practices. Retailers such as H&M, which rely heavily on invoice-based payments, have adjusted their payment flows to align with evolving regulatory expectations.
- National regulatory focus: Finansinspektionen (FI) and the Swedish Consumer Agency have increased scrutiny on unsecured digital credit since 2023, including expectations for more consistent creditworthiness assessments.
- EU-level developments: The Consumer Credit Directive II, published in October 2023 and moving into implementation through 2024-25, brings BNPL products, particularly invoice and deferred payments, under credit-style obligations.
- Industry shift: Klarna and other Swedish fintech lenders are pre-emptively adjusting underwriting frameworks in anticipation of closer supervision.
- BNPL providers will operate with more structured credit checks, reducing friction for low-risk consumers but limiting access for higher-risk borrowers. Market concentration may increase as regulated compliance raises operational costs for smaller entrants. Invoice-based BNPL will remain prevalent but will increasingly resemble standard consumer-credit processes.
Migration of BNPL usage from online commerce to physical retail and subscription services
- Swedish merchants are expanding BNPL availability beyond ecommerce into in-store checkout and recurring services. Klarna’s 2024 integration with major point-of-sale (POS) partners in Sweden and Scandinavia reflects rising demand for consistent payment options across channels. Retailers in electronics, fashion, and home goods, such as Elgiganten and H&M, have expanded in-store instalment acceptance.
- Omnichannel retail strategies: Swedish retailers have invested in POS digitisation and self-checkout systems following the 2023-24 shift toward cost-efficient store operations.
- Consumer expectations for unified payment experiences: Klarna’s widespread app adoption means users expect similar financing options across channels.
- Subscription expansion: Sectors such as mobility (e-bike leasing), home services and electronics protection plans increasingly use instalment-style billing.
- BNPL will become a standard POS feature for mid- to large-sized Swedish retailers. The model will broaden into service sectors where predictable recurring payments are critical. Providers that strengthen merchant-integration tools and POS compatibility will gain share, while purely online-focused BNPL models may lose relevance.
Rise of bank-issued instalment products as incumbents respond to BNPL demand
- Swedish banks are introducing card-linked instalment features and re-packaging revolving credit into structured repayment plans. SEB, Swedbank, and Handelsbanken have expanded their digital credit tools, including options to split transactions after purchase. These bank-issued instalments directly compete with standalone BNPL providers.
- Regulatory clarity: Banks face clearer supervisory frameworks compared with BNPL fintechs, making it easier to scale instalment features within existing credit licences.
- Competitive pressure: Klarna and other fintechs continue to capture checkout visibility, prompting banks to reassert their role in consumer credit.
- Customer trust: Banks leverage their established customer base and responsible lending frameworks to encourage migration toward regulated instalments.
- Bank-issued instalments will represent a growing share of Sweden’s short-term consumer credit. As banks push instalment plans through mobile banking apps, consumers may shift toward these alternatives, especially for higher-value purchases. BNPL fintechs will face pricing and margin pressure as banks internalise credit risk and distribution channels.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 101 |
| Forecast Period | 2026 – 2031 |
| Estimated Market Value (USD) in 2026 | $6.13 Billion |
| Forecasted Market Value (USD) by 2031 | $8.71 Billion |
| Compound Annual Growth Rate | 7.3% |
| Regions Covered | Sweden |
Report Scope: In-depth, Data-centric Analysis of Buy Now Pay Later Industry in Sweden Through 58 Tables and 82 Charts
Sweden Retail Industry & Ecommerce Market Size and Forecast
- Retail Industry – Spend Value Trend Analysis
- Buy Now Pay Later Share of Retail Industry
- Ecommerce – Spend Value Trend Analysis
- Buy Now Pay Later Share of Ecommerce
Sweden Buy Now Pay Later Market Size and Industry Attractiveness
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Sweden Buy Now Pay Later Market Share Analysis by Key Players
Sweden Buy Now Pay Later Revenue Analysis
- Buy Now Pay Later Revenues
- Buy Now Pay Later Share by Revenue Segments
- Buy Now Pay Later Revenue by Merchant Commission
- Buy Now Pay Later Revenue by Missed Payment Fee Revenue
- Buy Now Pay Later Revenue by Pay Now & Other Income
Sweden Buy Now Pay Later Operational KPIs
- Buy Now Pay Later Active Consumer Base
- Buy Now Pay Later Bad Debt
Sweden Buy Now Pay Later Spend Analysis by Business Model
- Two-Party Business Model
- Third-Party Business Model
Sweden Buy Now Pay Later Spend Analysis by Purpose
Sweden Buy Now Pay Later Spend Analysis by Merchant Ecosystem
- Open Loop System
- Closed Loop System
Sweden Buy Now Pay Later Spend Analysis by Distribution Model
- Standalone
- Banks & Payment Service Providers
- Marketplaces
Sweden Buy Now Pay Later Spend Analysis by Channel
- Online Channel
- POS Channel
Sweden Buy Now Pay Later By End-Use Sector: Market Size and Forecast
- Retail Shopping
- Home Improvement
- Travel
- Media and Entertainment
- Services
- Automotive
- Health Care and Wellness
- Others
Sweden Buy Now Pay Later By Retail Product Category: Market Size and Forecast
- Apparel, Footwear & Accessories
- Consumer Electronics
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Entertainment & Gaming
- Other
Sweden Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
- Spend Share by Age Group
- Spend Share by Default Rate by Age Group
- Spend Share by Income
- Gross Merchandise Value Share by Gender
- Adoption Rationale
- Spend by Monthly Expense Segments
- Average Number of Transactions per User Annually
- BNPL Users as a Percentage of Total Adult Population
For more information about this report visit https://www.researchandmarkets.com/r/wgknbi
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- Swedish Buy Now Pay Later Market
