Klarna losses are double as purchases are now 17 % in inflation

Clarna, an important player in Buy now, pay later (BNPL) Space has faced losses in recent months, as consumers failed to pay payments on their loans.

The company said in the profit report on Monday, while the KLARNA user base continued to grow in the first quarter, its losses are more than weak compared to the previous year. Its credit losses, when it fails to pay the borrower on a loan, 17 %.

Consumers have been constantly based on companies like Klarna, confirmation and peardpay to give them more financial flexibility in the face of Continuing inflationHigh interest rates and student loan payments, which resumed in October 2023 after a temporary stop due to the Covid-19 pandemic.

Costco is starting now, and later paid for online purchases by confirming

Consumers benefit from platforms because they allow the option to pay four interest -free installments every two weeks or, if approved, they can pay monthly payments over six to 18 months, with interest (only Peardpay allows the four installation plan). But experts have long warned, although these services can be easily tickets to excessive spending.

With klana, shoppers can divide the purchase into multiple installments instead of paying the entire amount in advance. Clarna faces all the money in advance to the retail seller and then takes money from a batch linked to the consumer over a long period of time.

The expert says the risk of purchase now, and later pushed: “A ticket to increase spending.”

If consumers do not have money to pay, they are exposed to late fees.

Another concern among experts is that obtaining approval of these services is very easy. For example, just because someone has been approved to use these loans does not guarantee that they have the financial means to pay them, according to consumer financing analyst at LindingTree Matt Schulz.

But these issues are not unique in Claarna. More than 40 % of BNPL loan users say they paid late from one of them last year, up from 34 % one year ago, according to LENDINGTREE.

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According to Lindestree’s Bnpl Tracker, 39 % of Americans were at least thinking about applying for a purchase now, and subsequently paid a loan in April, an increase of eight points from March. This represents the largest monthly jump since the eight points increased in March 2023.

Families were not in good condition as the American debt levels, including credit card debts, rose to new levels at all in the fourth quarter of 2024, according to a report issued by the Federal Reserve in New York in February.

The report showed that the total household debt increased by $ 93 billion to 18.04 trillion dollars at the end of 2024, which is the highest level ever. Credit card assets He rose by $ 45 billion from the previous quarter to $ 1.21 trillion at the end of December, which is also a record.

Eric Rafeel in Fox Business contributed to this report.