Financial comparison site money.co.uk has launched a stinging riposte to claims from buy now, pay later firm Klarna that it offers a fairer and more equitable platform for consumer spending than credit cards, according to Finextra.
In Klarna’s interim report, chief executive and founder Sebastian Siemiatkowski said: “Credit cards drive economic inequalities. Those who can afford to pay off their balances each month reap rewards through loyalty schemes while those who can’t afford to simply get into more debt.”
He added: “The credit card model is simply unsustainable for consumers, in fact, it’s unsustainable credit. And consumers are waking up to this as they choose more sustainable forms of net credit that are transparent, fair and suit the way they live their lives today.„
In response, money.co.uk senior editor James Andrews says: “There’s no doubt that problem debt can cause misery and worse to people trapped in a cycle of ever-bigger repayments.
“But what’s harder to see is how Klarna is the answer to that. People who can’t afford to repay aren’t exactly welcomed by the lender, and those that can repay on time see very little benefit for the loss of an awful lot of privileges.”
Recent research from money.co.uk among 2000 consumerss found that the average time UK shopper say it will take them to clear their BNPL debts is now nine months, well in excess of of the 30-90 day windows most schemes are based on.
“Klarna proudly claims to save people £144 of credit card interest every 60 seconds – we’re just not sure on what,” says Andrews. “That’s because purchases on credit cards don’t attract any interest at all for the first 56 days – almost identical to the 60 days interest-free Klarna offers on its popular Pay In Three option and far longer than its Pay in 30 Days product.„
He says the only way Klarna is saving people money is if its customers are habitual late-payers – who see their accounts blocked until they clear the debt rather than interest charged.
Andrews claims that borrowing via Klarna can push customers into a debt spiral, due to the lack of visibility with credit agencies.
The full article here
„Dupa ce oamenii creeaza un cont PayByFace si au adaugat cardul, selfi-ul si PIN-ul, si au avut un pic de curaj sa se duca sa incerce, daca au incercat o data plata prin recunoastere faciala nu mai folosesc altceva (n.r. ca modalitate de plata). 80% dintre ei numai asta folosesc. Le place la nebunie.”
Afla aici rezultatele in adoptia platii prin recunoastere faciala.