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Tuesday, September 28, 2021

Millennials are addicted to shopping through the $46 billion Klarna app

If you search for “Klarna” on the “Tik Tok” platform, you will find young people talking sarcastically about the debts they incurred using the popular “Buy Now Pay Later” app. Some dance as “debts in deferred” comment appears on the video, after footage of them using the Klarna app to shop and buy clothes. Others share videos of the company’s payment requests with the “I know you’re obsessed with me” comment from a remixed song.

Joila Luisa shared a video with the caption: “When you put on a new outfit and Klarna reminds you to pay for it.” Although she seems annoyed by the fact that she doesn’t like the bill to be paid, she can’t stop it. “In the past, when I didn’t have the money, I simply couldn’t shop. Now with” Klarna, I can do that.

Buy now, pay later
Postpay applications have a double-edged aspect to the concern of financial regulators. While young “fashion stars” on Tik Tok see the potential risk of taking on short-term debt through these apps when they pay off, the temptations are too great for them.

Credit rating companies express concern that this increasingly widespread financing option may encourage more reckless borrowing. The high demand for Klarna (average client age is 33) by millennials and Generation Z helped the company receive a valuation of $45.6 billion in the latest funding round led by Soft’s Vision Fund 2 Bank”.

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