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Klarna's Losses Widen After More Consumers Fail To Repay Loans


Klarna's net loss more than doubled in the first quarter [non-paywalled link] as more consumers failed to repay loans from the Swedish "buy now, pay later" lender as concerns rose about the financial health of US consumers. Financial Times: The fintech, which offers interest-free consumer loans to a...

The company, which makes money by charging fees to merchants and to consumers who fail to repay on time, said its customer credit losses had risen to $136 million, a 17% year-on-year increase. The increased failure to repay comes on the back of gloomy economic sentiment in the US, where a closely watched measure of consumers' confidence last week fell to its second-lowest level on record. US President Donald Trump's trade war has driven expectations of higher inflation.

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