A recent feature in The New York Times Magazine claimed that BNPL is driving a new culture of consumerism. The article was largely based on the single testimony of one person and does not reflect the reality lived by tens of millions of responsible consumers. BNPL is a modern, transparent alternative to an outdated credit system.
A recent survey found 72% of Americans believe the credit system is unfair, yet over half depend on it for basic necessities. The Federal Reserve Bank of New York’s numbers from Q2 2025 shows that credit card balances rose by $27 billion during the second quarter and now total $1.21 trillion in outstanding debt - up 5.87% compared to a year ago.
Unlike revolving credit cards, Klarna’s BNPL products - such as Pay in 4 or Pay Later - have clear repayment schedules, fixed terms, and no hidden interest. Customers receive multiple reminders and full visibility in the Klarna app, making it easier than ever to stay on top of payments.
That’s not financial chaos — that’s financial clarity. So let’s dive into some of the article’s most misleading claims — and share the facts about how Klarna actually works.
NYT Magazine Claim: “‘Buy Now, Pay Later’ built a delirious new culture of consumption — and trapped users in a vortex of debt.”
The Facts: The article presents no evidence that BNPL is responsible for a “new culture of consumption.” In fact, personal consumption as a percentage of U.S. GDP rose steadily from 58.8% in Q4 1966 to a peak of 68.8% in Q1 2011, and has remained broadly stable ever since, standing at 68.2% today.
Klarna entered the U.S. in 2019, eight years after consumption peaked and more than five decades after the trend began. The central argument of the article rests on anecdotes, not data.
NYT Magazine Claim: “Klarna alone offered her $12,000 to use at any given time.”
The Facts: This is incorrect as Klarna does not provide open credit lines. All extended credit is tied to specific purchases. We make a credit decision on each transaction based on a customer’s credit score, repayment history, and the characteristics of the specific purchase. If a customer’s score drops, if they fall behind on a payment, or depending on the merchant, we immediately adjust or reduce the amount they can spend.
As a one-off loan, Klarna would only lend $12,000 in very limited circumstances — to consumers with exceptionally high credit scores, a long record of on-time payments, and for a narrow set of high-value purchases. In 2024, less than 0.02% of the loans we issued were USD $12,000 or more.
NYT Magazine Claim: “You never know what’s going on … you can’t budget, because you don’t know what’s leaving your account on what day.”
The Facts: This could not be further from the truth. Klarna was built to make payments more transparent, not less. Within the Klarna app, customers can see every purchase, payment schedule, due date, and remaining balance in real time. We send multiple notifications before payments are withdrawn and provide itemized receipts linked to each merchant.
Consumers know exactly what they’re paying for, when, and how much. Many customers tell us Klarna gives them greater visibility and control than traditional credit cards, where balances roll over and interest accrues in the background.
NYT Magazine Claim: “Getting approved for BNPL requires no minimum credit score.”
The Facts: Klarna checks every customer’s credit score and payment history before approving any loan. Minimum thresholds apply, and if a customer is currently late on a payment, we do not approve new purchases. To use Pay in 4, customers must make an upfront payment of 25% of the purchase price — reinforcing responsibility from the very first transaction.
The Data Is Clear
Regulators’ own research confirms BNPL’s benefits. According to the
:Default rates on BNPL loans (2%) are five times lower than on credit cards (10%).
First-time BNPL use does not increase other debt such as loans or credit cards.
One in three BNPL users have no other debt at all.
Consumers with lower credit scores do not default more on non-BNPL obligations.
Independent research in Sweden supports this pattern: borrowers with BNPL experience are 10–12 percentage points less likely to fall behind on traditional bank loans.
Empowering Consumers, Not Encouraging Debt
BNPL has not created a “new culture of consumption.” U.S. spending trends have been stable for over a decade. What BNPL has created is a fairer, more transparent alternative to traditional credit — one that millions rely on responsibly.
Klarna will continue to champion fact-based discussion about how credit can work better for everyone.