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Klarna Sees Buy Now, Pay Later Surge as More Struggle with Repayments

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Stockholm, Sweden

May 23, 2025 2 Negative I want money/finance advice

Stockholm, Sweden: Buy now, pay later leader Klarna revealed rising consumer credit losses this quarter—up 17% to $136 million—as more Americans use installment plans for groceries and everyday items. A recent survey found 41% of BNPL users missed a payment in the past year, a jump from 34%. Despite higher defaults, Klarna’s revenue grew 15% (to $701 million), indicating strong user uptake. Observers worry that increased reliance on BNPL signals deeper financial strain among middle- and low-income customers.

What this means for you:

•	Splitting payments for essential goods can lead to mounting debt—review your budget carefully before adopting BNPL.
•	If you’re a business owner, BNPL can boost sales but also bring risk if your provider faces liquidity issues.
•	BNPL might expand further unless regulators impose consumer-protection measures, so keep reading the fine print.
•	Missed payments could appear on credit reports, affecting broader borrowing capacity.

Key Entities

• Klarna: Leading European BNPL platform, partnered with major retailers like Walmart and DoorDash.
• BNPL Services: Sometimes unregulated compared to credit cards, raising consumer debt worries.
• Regulators: Monitoring if BNPL fosters unsustainable borrowing, especially for essentials.

Bias Distribution

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Multi-Perspective Analysis

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Centrist View

Highlights consumer spending data and risk factors.

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