Myth: Klarna is a tyrant targeting the innocent youth.
Truth: We believe a better world is one in which affordable, flexible solutions like debit cards and buy now pay later replace credit cards and other forms of high-cost credit.
People of all ages who use our buy now pay later products, such as Pay later and Instalments, have worked out that it really is a smarter and simpler way to manage your money. Especially with no interest or late fees, as commonly seen with a credit card.
That said, whilst making our payment solutions accessible as we can – we do have a commitment to only make Klarna available responsibly, and it’s one we take very seriously.
We do this by being very careful with our eligibility assessments on every transaction and only allowing new customers to borrow very small amounts.
Unlike credit cards where legacy banks make profits from customers who can’t afford to keep spending, we do not encourage shopping in this way, Because in all transparency, we lose money if we do so. Our business model does not incentivise us to have people spend more than they can afford. It does the opposite!
As for the question on youth, the average age of our customers is actually 33 years old, which is older than the average first-time homebuyer. And our fastest-growing age group is between 40-54, which might surprise you too. It’s early adopters who share our vision for a modern way of payments that make up our consumers, not a particular age group.