Consumers Struggle To Repay Klarna Loans

Klarna reported a net loss of $99 million in the first quarter as consumers struggled to pay back “buy now, pay later” loans. Klarna has grown aggressively over the past few years by partnering with DoorDash, Walmart, and eBay. These features have allowed American consumers to pay for items like food and groceries with loans. However, a dip in consumer confidence and anticipation of higher inflation are raising concerns. Klarna said it was “closely monitoring changes in the macroeconomic environment.” (Financial Times)