Wells Fargo maintains bullish outlook on BNPL sector

Wells Fargo analysts released their quarterly Buy Now Pay Later (BNPL) tracker, citing Sensor Tower data on global and U.S. app downloads and monthly active user (MAU) trends for Affirm (NASDAQ: AFRM), Klarna, Afterpay, and Sezzle.

According to the report, Klarna and Affirm retained the largest share of global BNPL app downloads at 59% and 19%, respectively, in the third quarter of 2026, stable compared to the second quarter. All tracked players saw negative year-over-year growth but positive quarter-over-quarter growth in the third quarter, which analysts attributed to seasonality.

Affirm recorded the highest download growth among the group at -6.5% year-over-year. Klarna downloads declined 12.6%, Afterpay fell 12.4%, and Sezzle dropped 39% year-over-year in the third quarter.

On MAU trends, Klarna held 65% global market share in the third quarter, while Affirm grew its share by 1% to 19%. Affirm posted the fastest year-over-year global MAU growth at 7.3%, followed by Sezzle at 1.5%, Klarna at -3.9%, and Afterpay at -13.5%.

In the U.S., Klarna represented 36% of total downloads in the third quarter, up 1% quarter-over-quarter, while Affirm held 34%. Affirm maintained the highest share of U.S. MAUs at 40%, with Klarna at 36%, Afterpay at 17%, and Sezzle at 6%. Affirm saw the fastest U.S. MAU growth at 7.6% year-over-year, followed by Klarna at 4.1%, Sezzle at 1.8%, and Afterpay at -22.3%.

Wells Fargo maintained its Overweight rating on Affirm, which the bank includes in what it calls its "Fab 5 of Fintech."

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by StoneX Amid Soft Consumption Backdrop
• XCF Global reports $12M in September renewable diesel sales
• Zimmer Biomet and Think Surgical extend robotic distribution deal