Fintech Nexus Newsletter (April 5, 2024): Klarna launches Wikipink in a challenge to credit cards
We know consumers love BNPL, with millions preferring it over credit cards as a purchase method.
We also know that much has been written about consumers misusing BNPL and causing themselves financial difficulties.
Klarna has launched a new initiative called Wikipink to dispute that last point. The goal is to bring more transparency to BNPL and position it favorably against credit cards.
Ok, that last piece is not their stated goal but it seems to be the implication here.
Wikipink will reveal data on Klarna’s own services, including “repayment rates, late fee rates, and consumer age demographics, highlighting its commitment to fair and sustainable credit solutions.”
The announcement also included some results from a recent poll of 2,000 consumers and their usage of credit cards and BNPL. It found that 96% of Klarna users pay off their purchase early or on time while 41% of credit card users carry a balance month to month.
I applaud any initiative that brings more transparency to the BNPL data. I am a big fan of the product and think it is an excellent alternative to carrying credit card debt.
What I want to know is how many of the revolving credit card debt crowd are also heavy users of BNPL.
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