As Klarna celebrates its 20th anniversary, the company has transformed from a niche financial service into a major player in the rapidly expanding Buy Now, Pay Later (BNPL) market, which is growing at an astonishing rate of 233% annually in the U.S. This service has become particularly popular among Gen Z consumers, who appreciate the convenience of breaking down large purchases into smaller, manageable payments. However, this ease of access comes with significant risks, as many young consumers are unaware of the potential pitfalls associated with BNPL services, such as hidden late fees and the impact on their credit scores. A recent poll revealed that over half of Gen Z respondents would not have made a purchase without a BNPL option, indicating its strong influence in e-commerce. While the appeal of BNPL is undeniable, the lack of financial literacy among young consumers poses a serious challenge, making it essential to educate them about the long-term consequences of their spending habits.
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