US EditionKlarna’s losses widen after more consumers fail to repay loans
- Klarna, the Swedish buy now, pay later firm, reported $136 million in first-quarter consumer credit losses in 2025, rising 17% from last year.
- This increase follows reports from Bankrate and LendingTree showing more BNPL users falling behind on payments, with late payers rising from one-third to four in ten.
- Klarna expanded its user base to 100 million by April 2025, grew merchant partnerships by 27%, and reduced its workforce by 40% while increasing tech staff to 52%.
- CEO Sebastian Siemiatkowski said, “Our AI-first strategy is driving exceptional returns,” despite a $99 million quarterly net loss and rising consumer credit losses.
- The growth in losses and late payments highlights mounting financial stress among BNPL users and ongoing regulatory concerns about risks to vulnerable consumers.
85 Articles
85 Articles
Buy now, pay later under scrutiny as Klarna reports rising defaults
Klarna says more customers are falling behind on their buy now, pay later loans as U.S. consumer debt hits a record high. Here’s what’s behind the trend and what it means for financial health.
It is no longer uncommon for you to finance your iPhone. But, your burrito? Klarna and other platforms “buy now, pay later” are pushing the limit: today you can split in quotas to a fast meal. The amazing thing is not that technology allows it, but that millions are doing it. People getting indebted for tacos, groceries and concert tickets. Madness? Not so much. It’s the reflection of an economy in which living a day is not an option, but a nece…
Klarna customers should be careful now: A fraudulent e-mail is going around. Here you can find out how to protect yourself.
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…
Coverage Details
Bias Distribution
- 58% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
