Klarna users are being signed in to random accounts

Re:Klarna users are being signed in to random accounts by raesene9 on Thursday May 27, 2021 @07:07AM (#27301504)

Klarna seems to be super popular with e-commerce sites, my guess is that there's some kind of financial incentive to the hosting site, when compared to other payment options.

As to why it's popular with consumers looking at https://www.klarna.com/uk/smoooth/ , seems like they're offering months of interest free credit and also the implication is that using Klarna doesn't affect credit score.

It'd be interesting to know how their credit risk setup works.

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Re:Klarna users are being signed in to random accounts by AtNightWeCode on Thursday May 27, 2021 @07:56AM (#27301926)

Klarna is very easy to use. They take a large part of the risk. The seller typically sells the purchases to them.

It may be different in different countries but the thing with the interest free credit is that once you don't pay on time it is converted into a revolving credit with high interest rate and something like a 60 months payment plan.

Klarna have also historically made up own names for fees to circumvent regulations for regulated fees. They were among the first to remove days of grace and among the first to use a fixed number of days from purchase to due date.

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