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OT: just googled that name, info panel on the right in my language settings categorizes it as "金融の連鎖", or "cascading of finances". am not sure how to take that.
by numpad0 2y ago
OT: just googled that name, info panel on the right in my language settings categorizes it as "金融の連鎖", or "cascading of finances". am not sure how to take that.
- LtWorf 2y agoKlarna is basically loan sharks but if you do it with an app is legal. Also Opera the browser moved to doing that.
- nradov 2y agoIn fairness to Klarna, the interest rates they charge are typically low or even zero. The problem is more that they're encouraging poor people to waste money on things they probably shouldn't buy in the first place, like expensive concert tickets or consumer electronics.
- malfist 2y agoI used to work at a competitor to klarna so take this with a grain of salt, but the zero interest rates aren't really zero. They finance either by klarna eating into their runway, or by the business paying the interest up front. Which usually leads to higher prices for everyone, regardless of you using klarna or not
- krysp 2y agoThat's only the case if demand is static. The parent comment mentions that "poor people buy more stuff" which is increased demand
- shawabawa3 2y agoPretty good description tbh Their business model is an online payment provider (like e.g. PayPal/apple pay) that splits the payment into 3, 6 or 12 monthly payments, usually at 0% interest The idea being that for the business the loss in revenue from an interest free loan is worth it if it causes an increase in sales
- numpad0 2y agoBut isn't it supposed to be more like "financing franchise"?