Klarna, the global digital bank and flexible payments provider, announced a continued improvement in repayment performance among its extensive consumer base of 100 million. „A record number of transactions were repaid on time or early, across both higher and lower-value purchases, as consumers turn away from credit cards to Klarna’s fairer credit options for more and more of their everyday and big-ticket spending.” – according to the press release.
Globally, Klarna’s delinquency rate on Buy Now Pay Later (BNPL) loans fell to 0.88% for Q2 2025 — a 15 bps improvement from 1.03% in Q2 2024. Delinquencies on Klarna’s fixed-term Fair Financing product fell to 2.18% in Q2 2025, down from 2.20% last year. „Typically used over 6–12 months for higher-value items across an increasingly diverse number of sectors like homeware and white goods, this product naturally sees a higher delinquency rate than short-term BNPL.” – Klarna explained.
“More customers are paying us back on time or even early, with delinquency rates continuing to decline: proof that our model is working exactly as intended. When you build credit products that are fair, transparent, and designed with the consumer in mind, people make responsible choices,” said Sebastian Siemiatkowski, Klarna CEO and co-founder.
The company added: „As consumer financial health improves across the board, Klarna is experiencing increased demand for its credit products across the spending spectrum — from Fair Financing for larger purchases to the Klarna Card for everyday spending. This trend shows that Klarna’s unique underwriting approach continues to make the right decisions for consumers and Klarna’s business.”
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