Afterpay and Klarna are actually very similarly valued now. As of the end of 2021, Klarna will have a PS ratio of about 26 (slightly more than Afterpay I think), and a Market Cap to GMV ratio of about 0.55 (way below Afterpay). I’d say these two are now considered the top dogs in BNPL based on their dominant international positions and success in the USA, and it’s reflected in their premium valuations. Compared to Afterpay, Klarna was very undervalued until last September, and now they have caught up. I think Afterpay and Affirm got way ahead of themselves during the February 2021 tech bubble, so i wouldn’t consider the fact that they dropped 30-50% since then very reflective of their business performance.
Affirm is valued slightly lower than them (but still very highly valued). In my opinion, It has less international success and seems to be considered closer to a traditional payday lender. It’s extremely reliant on Peloton and it doesn’t own the customer relationship the way Afterpay and Klarna do. In Australia/Germany/Uk you’ll see tons of people absolutely raving about Klarna/Afterpay, saying they can no longer live without it, etc. I’ve never seen comparable reactions to Affirm. They’re basically a payment processor that works in the background. No one is passionate about Affirm.
