Cramer Says Skip Klarna Despite Buy-Now-Pay-Later Buzz

Jim Cramer just handed investors a clear pecking order in the payments space, and if you own Klarna, pay attention.

Following a major Bank of America rollout covering five names in payments and buy-now-pay-later, Cramer laid out exactly where he stands. BofA likes all five. Cramer does not.

“There’s a huge rollout at Bank of America on the companies that we often talk about — Mastercard, Visa, Affirm, Klarna, Block. And I would point out that they like every single one,” Cramer said. But his view is more selective.

Klarna: The One to Skip

Cramer’s verdict on Klarna Group (NYSE:KLAR | KLAR Price Prediction) was blunt: “I would not go with Klarna. I think Klarna is not the buy now, pay later. I don’t want it. If I take it, I’ll get something from Affirm.”

The numbers support that skepticism. Klarna’s stock has fallen roughly 53% year-to-date and is down about 70% from its IPO price of $45.82 since its September 2025 debut, sitting at $13.69 today. The company posted a full-year 2025 net loss of $273M and while it guided for its first adjusted operating profit in Q1 2026 of $5-$35M, that’s a razor-thin margin on a company still burning cash. A composite sentiment score of 36.73, flagged as bearish suggests the market agrees.

Affirm: The Higher-Risk BNPL Winner

For BNPL exposure, Cramer points to Affirm Holdings (NASDAQ:AFRM). “Max Levchin, I think is a genius and Affirm is really at a great level.”

Affirm’s fundamentals support the enthusiasm. The company posted Q2 FY2026 revenue of $1.123B, up nearly 30% year-over-year, with GMV of $13.8B, up 36%. Its Affirm Card alone saw GMV jump 159% to $2.2B. Analysts carry a consensus price target of $83.67 against a current price of $51.54. That’s meaningful upside, but the stock is down 31% year-to-date, and with a beta of 3.727, the ride won’t be smooth. Cramer’s “higher risk” label is earned.

Mastercard vs. Visa: Safety With a Slight Edge

For investors who want to sleep at night, Cramer lands on Mastercard (NYSE:MA): “For people who don’t want a lot of risk, Mastercard has got high growth. It does a really good job.”

With full-year 2025 revenue of $32.791B, up over 16%, a profit margin of 45.7%, and 33 analyst buy ratings with a consensus target of $660.23, Mastercard earns that description. The stock trades at a forward P/E of roughly 27x, reasonable for a business with a near-monopoly on global payment rails.

Visa (NYSE:V) isn’t far behind. “Visa, while good — I think Mastercard is run a little better right now. Not much, but I like it.” Visa’s Q1 FY2026 revenue hit $10.901B, up nearly 15%, with 36 analyst buy ratings. It’s a fine business, just not Cramer’s top pick right now.

The takeaway: for BNPL exposure with a cleaner story, Affirm is Cramer’s pick. For payments without the volatility, Mastercard. And Klarna, despite the IPO buzz, is the one he’s passing on entirely — and the stock’s performance since September suggests he wasn’t wrong.

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