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Surely Klarna’s model relies on some portion of folks being charged late fees? Seems only marginally less predatory…
by agsnu 3y ago
Surely Klarna’s model relies on some portion of folks being charged late fees? Seems only marginally less predatory…
- basisword 3y agoI mean that's just how credit works right? Either you pay a certain amount of interest or there are late fees. Payday loans you typically pay back the sum + a large (10+%) amount of interest even when borrowing for as little as one week and paying back on time. Hugely more predatory. They're seeking out people who need cash and have no other option.
- pseudo0 3y agoTypically BNPL companies like Klarna take a cut from the merchant as well. The idea is to increase volume for the merchant through psychological trickery, resulting in a net increase in profit even after the BNPL company's cut.