Klarna boss says its buy-now-pay-later model is cheaper for consumers than credit cards
But other buy-now-pay-later lenders cannot see if a person has been rejected by a similar company, increasing the potential for consumers to rack up debts.
The massive popularity of Buy Now Pay Later options for online purchases has propelled Klarna and its main competitors Clearpay and Laybuy into the spotlight. But the headline promises aren't the whole story. Plenty of people do fall into debt when they don't keep up with payments, debts can be passed onto third party collection companies, and the situation can spiral.
"For example, more than one in ten customers of a major bank using buy-now-pay-later were already in arrears. Regulation would protect people who use buy-now-pay-later products and make the market sustainable."
Danmark Seneste Nyt, Danmark Overskrifter
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