Klarna

Thoughts on Klarna and how they are progressing? they seem to be growing quickly online.

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Nice to see you again @vekariya17!

I think it’s great to see another European startup really take off on a global scale, it’s nice to see a shift happening in VC investment and growth from the USA which has held the trophy for as long as I can remember. :slight_smile:

I don’t personally believe in the buy now, pay later Klarna offer’s though as I think it sets the younger generations up to fail, encouraging people to buy simple everyday items with money they don’t have. Kind of fuels the ‘instant gratification’ problem many seem to have although I understand many also use this kind of service wisely. May as well invest those funds for a few weeks longer rather than handing them straight over to the retailer :wink: From a business perspective it certainly works though, an Australian company called Afterpay started this a few years ago and has seen amazing success because of it, recently launching in the USA and the UK (albeit under a different name I believe). It’s another consumer shift away from the big banks, closer to fintechs who align more with their lifestyle… beats a 20% credit card interest rate I guess!

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Use the service wisely but don’t miss a payment! :wink:

Hi Mitch - I’ve been around :wink:

I guess it all depends on the end user and how they manage paying back the credit owed. It probably also beats taking a payday loan etc which has gone through the whole cycle.

Personally i would never take anything on a credit basis but i guess the market is showing an appetite for this…

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Totally agree, payday loans should be a last resort and only used if it’s necessary to keep a roof over your head! Not sure what the interest rates are on those in the UK but in Australia I believe they can be as high as 30-40% interest which is crazy! I guess the benefit with Klarna and other buy now, pay later schemes is that they don’t cost the consumer anymore, if they in fact keep up with the payments.

I still believe if you don’t have the cash to buy it now then you shouldn’t be buying it. I learnt this the hard way when I was younger :wink: