Klarna’s losses widen after more consumers fail to repay loans

Buy now, pay later defaults are rising

KEY TAKEAWAYS: Klarna reports a 17% increase in consumer credit losses in Q1 2025. BNPL usage linked to rising overdraft fees and missed payments. Federal regulators scale back enforcement of BNPL protections. Nearly 40% of BNPL users reported late payments in past year. More Klarna customers are having trouble repaying their “buy now, pay later” loans, the short-term lender said this week. The disclosure corresponded with reports by lendi…

Klarna's losses double as more buy now, pay later customers struggle with loans

Klarna's net losses for the first quarter reached $99 million, almost double the $47 million it lost during the same period a year earlier.Read Entire Article

Consumers Are Falling Behind on Their ‘Buy Now, Pay Later’ Loans

Analysts say that the missed payments are a sign of faltering financial health among consumers.

Klarna's CEO uses an AI clone to deliver earnings

Klarna said it used an AI doppelganger of CEO Sebastian Siemiatkowski to report its updated quarterly earnings.KlarnaKlarna said it used an AI avatar of its CEO to report quarterly earnings in a YouTube video.Klarna brands itself as an AI company and has "streamlined" its workforce by 40% since 2022.Klarna's Q1 results show revenue growth but see a spike in net and credit losses.Buy now, pay later services company Klarna said it used an AI doppe…

More and more Klarna customers are struggling to repay their buy now, pay later (BNPL) loans, the Swedish company reported this week. This revelation coincides with reports from lending platforms Bankrate and LendingTree, which noted an increase in the proportion of users who have fallen behind on their payments.

Why are more shoppers struggling to repay 'buy now, pay later' loans?

Short-term lender Klarna says more customers are having trouble repaying their “buy now, pay later” loans.