Which Buy Now Pay Later Stock Dominated in September: Klarna, Affirm, or Sezzle?

Affirm Holdings (NASDAQ:AFRM | AFRM Price Prediction) stock was September’s relative winner among the three buy now, pay later names, even after falling 10.5% to $69.61. Klarna Group (NYSE:KLAR) stock declined 12.5% to $12.42, while Sezzle (NASDAQ:SEZL) stock fell 13.2% to $107.64.

None of the three companies delivered a positive September return, though Affirm stock’s smaller loss gave Affirm the narrow lead. The pullback occurred as the Financial Select Sector SPDR ETF (NYSE ARCA:XLF) fell 7.9% in September, which is substantially worse than the SPDR S&P 500 ETF Trust’s (NYSE ARCA:SPY) roughly 0.3% decline.

Affirm Was the Relative Winner

Affirm stock outperformed Klarna stock and Sezzle stock by limiting its September decline to 10.5%. Even so, Affirm stock underperformed the XLF ETF, showing that the buy now, pay later group faced pressure beyond the broader financial sector’s weakness.

Affirm’s business centers on installment-payment products offered through merchant relationships and consumer checkout experiences. The company’s results can depend on transaction volume, merchant growth, funding costs, credit performance, consumer spending, and the pace at which shoppers adopt installment financing.

The smaller decline may suggest that investors view Affirm as relatively well positioned among the three names. However, a negative monthly return also shows that investors remain cautious about valuation, credit risk, and the sensitivity of consumer-finance platforms to changing economic conditions.

Klarna Faced Post-Listing Pressure

Klarna stock fell 12.5% to $12.42 in September, trailing Affirm but slightly outperforming Sezzle. Klarna’s September performance was notable because Klarna stock traded below the broader financial-sector benchmark by several percentage points.

Klarna operates a global payments and shopping platform that offers installment financing and other consumer-payment options. The company’s growth story depends on consumer engagement, merchant relationships, transaction activity, credit outcomes, and Klarna’s ability to turn scale into sustainable profitability.

Recently listed companies can experience sharp moves as investors establish views on valuation, competitive positioning, and long-term financial potential. Klarna’s decline may partly reflect that price-discovery process, particularly in a month when financial stocks broadly retreated.

Sezzle Posted the Largest Decline

Sezzle stock recorded the largest September loss of the group, sliding 13.2% to $107.64. The decline left Sezzle behind both Affirm stock and Klarna stock, while also underperforming the XLF ETF.

Sezzle provides installment-payment solutions that compete in the same broad consumer-finance category as Affirm and Klarna. The company’s shares can move sharply as investors evaluate merchant growth, transaction trends, consumer-credit performance, and competition from larger payments companies.

The greater decline does not determine Sezzle’s long-term prospects on its own. However, Sezzle stock’s September performance shows that investors placed a lower near-term value on Sezzle’s outlook than on the prospects reflected in Affirm stock or Klarna stock.

Affirm Took a Narrow Lead. So, What’s Next?

Affirm dominated this September comparison only in relative terms, as Affirm stock declined less than Klarna stock and Sezzle stock. All three buy now, pay later stocks underperformed the XLF ETF, which itself lagged the SPY ETF by a wide margin.

That result points to two overlapping pressures: broad weakness in financial-sector equities and more concentrated caution toward consumer-finance platforms. Investors will likely focus on loan performance, funding costs, merchant and user growth, transaction volume, and the companies’ paths toward sustained profitability.

Affirm, Klarna, and Sezzle could move in different directions when each company reports earnings or updates its outlook. Investors should consider keeping position sizes modest because buy now, pay later stocks can be especially sensitive to credit conditions, consumer trends, and changing valuation expectations.

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