flatreader

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 allow customers to make retail purchases, on Monday reported a net loss of $99 million for the three months to March, up from $47 million a year earlier. 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. Further reading: The Klarna Hype Machine.