London fintech eyes IPO as Klarna’s listing puts pressure on the City
UK card reader firm SumUp is weighing a stock market listing that could value it at up to $15bn (£11.04bn) – a move that could deliver a rare win for the London Stock Exchange, though the firm is also considering New York amid doubts over the City’s appeal.
The London-based fintech, which makes card readers for small businesses and also offers banking and invoicing services, is in talks with investment banks and hopes to float within the next year, according to people familiar with the plans.
Its founders are expected to remain the largest shareholders.
A float would help SumUp raise cash to buy up rivals, with one insider saying the European payments market is “ripe for consolidation”.
The firm, founded in 2012, already serves more than four million customers across 36 countries.
But the question of where it will list still looms.
London’s market has struggled to attract major floats, with lower valuations compared to Wall Street driving firms abroad.
Wise, once one of the City’s flagship fintechs, is in the process of moving its primary listing to New York, while Swedish buy-now-pay-later giant Klarna chose Wall Street for its IPO last week.
Klarna test for fintechs
Klarna’s hotly anticipated debut underscored both the appetite for fintech stocks and the gulf between the UK and US markets.
The firm’s shares saw an uptick of 15 per cent on the New York Stock Exchange on Wednesday, closing at $45.82 after raising $222m and securing a $15bn valuation.
This marked a strong start, despite still falling far below its 2021 peak of $46bn.
Russ Mould, investment director at AJ Bell, noted Klarna’s ‘unusual’ first-day trading, saying: “Clearly some investors don’t believe it is worth owning at the current price. Whether that’s a straight valuation call or concerns about the business model and its prospects remains to be seen”.
Analysts said the IPO was more than 20 times oversubscribed, a sign of renewed confidence in fintech models, but also a reminder of Wall Street’s deep liquidity.
“It’s clear to see the deep liquidity and investing appetite for US-listed tech stocks makes the UK appear less appealing to up-and-coming companies by the day”, said Lee Holmes, chief executive of broker INFINOX.
London at risk
Chancellor Rachel Reeves has vowed to make the UK the best place to ”start up, scale up and list”, but concerns remain.
Tech M&A analyst Claire Trachet warned Klarna’s float “underlines the gulf between the US and UK public markets”, adding that unless the City deepens liquidity and broadens its investor base, it risks becoming ”a market defined only by consolidation at the top rather than a healthy pipeline of new entrants”.
Newly released figures underline the challenge. UK fintech investment fell five per cent year-on-year in the first half of 2025 to $7.2bn (£5.36bn), with analysts warning that regions like the UAE are becoming increasingly attractive for capital raising.
For SumUp, which last raised €590m in 2022 at an €8bn valuation led by Bain Capital, the decision of whether to bet on London or New York will be watched closely across the fintech sector.
A London listing could help restore confidence in the City. But, a New York debut would deepen fears that the UK is losing its fintech crown.