I use Klarna (albeit rarely) to only pay _after_ any returns are completed and only the amount I need. Not pay upfront and then wait good know how long for three online shop to return my money. I always pay well before the deadline.

My bank just scraped virtual cards and I use them for online payments so I wanted to use Klarna as a virtual card. Went through the whole process only for it to fail at the end with Klarna saying that they can’t generate that card, but I should go talk to Schufa or Arvato about it.

So, not all use cases are bad and Schufa should distinguish between them.