A Swedish fintech company with a novel premise is facing complications as a wave of consumers taking micro-loans to pay for necessities such as rent and groceries threatens the company’s business model.
Klarna Bank AB, the above-mentioned fintech company, has seen a rapid drop in its valuation after a disappointing round of financing drew in only $800 million, as investors become warier of the company’s ability to maintain its unique business model.
Klarna is a company that allows users to take out small, interest-free loans in order to pay short-term bills such as groceries, rent, and gas.
The financial insecurity which causes ordinary Americans to seek these micro-loans may be largely attributable to the swelling rate of inflation, which has continued to rise throughout the period following the initial wave of CCP (Chinse Communist Party) virus lockdowns….