Klarna’s losses widen after more consumers fail to repay loans
Klarna’s losses widen after more consumers fail to repay loans
‘Buy now, pay later’ group’s weaker results come as concerns rise about the financial health of US consumers
Paywall removed https://archive.is/77WtC
Their whole purpose is to psychologically trick people into buying more than they can afford. It only takes elementary level math to see this coming.
My company had a client who did those financed schemes where people buy furniture and TVs and stuff and pay in installments. The one bit of information that stuck with me was they expected 50% of customers to default. They went under.
I was about to say how can you run a business like that but it just clicked. The execs were running a scheme on the company itself. The company tricks financially illiterate customers (I sympathise, not denigrating) into debt and bankruptcy, ruining their lives, while the owners pay themselves handsomely and buy cars and mansions running the company into bankruptcy. But they walk away with all their toys paid for by the broken finances of their victims.
Fucking parasites.
sounds like a variation of a PE firm.
Nobody is paying back their burrito loans!
Guess it's time to send the repo man down to the sewage treatment facility.
They wanted to do an IPO: https://www.investopedia.com/klarna-is-moving-toward-big-ipo-what-you-need-to-know-8748846
but they've been experiencing losses like this and have put the IPO on hold. With the losses getting worse, I have a feeling they won't IPO anytime in the near future. Also, people failing to repay laxer loans like klarna means bad things for the market at large.
Oh man, people ain't paying back their fast food burger loans?
BNPL over-extension and collapse was one of the things that led to the 1929 stock market crash. Back then, people were BNPLing things like RCA radios. Today it's cell phones and groceries.
Too bad we can't learn from history.
I'd argue the small loans are just a symptom of the underlying issue: overly unequal wealth distribution.
This is what happened to a lot of pay day loan companies in the UK
I smell a bubble