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.
86 Articles
86 Articles
Buy now, pay later under scrutiny as Klarna reports rising defaults
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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…
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