Klarna CEO talks buy now pay later lending

As high inflation continues to put pressure on consumers, more shoppers are turning to buy now, pay later (BNPL) schemes to afford their purchases. Klarna CEO Sebastian Siemiatkowski joins Wealth! to discuss the state of consumer spending and new Consumer Financial Protection Bureau (CFPB) regulations.
Siemiatkowski says that consumers are increasingly turning to Klarna as "a more attractive product in a higher-interest market." He adds that it is a "better alternative to using credit cards," allowing consumers to control their debt and pay back their expenses in a timely manner.
As the CFPB issued a new rule that will regulate BNPL lenders similar to credit card companies, Siemiatkowski says, "We welcome these changes that the CFPB suggested because they are basically good standards that anyone lending money should apply, in our opinion, about making sure there's good consumer protection."
Klarna is one of the latest companies to leverage AI, using a customer service chatbot to handle requests. The AI technology was able to handle 70% of all errands, and Siemiatkowski points to this innovation as an effective cost-cutting measure that wiped out about 700 jobs.
He adds that the company is continuing to innovate as AI seeps into all corners of the market: "What we're going to see is a kind of singularity moment in business where there will be businesses who, at the core, have learned how to apply these technologies in order to create businesses that move at a 10x speed to the incumbents, and those business will start emerging and accelerating ahead of a lot of the competition. And in my opinion, it's my responsibility to our employees, to our shareholders, to our customers to aspire to be one of those companies."
#youtube #stocks #news
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (apple.co/3Rten0R) or Android (bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: / yahoofinance
Instagram: www.instagram....
TikTok: www.tiktok.com...
Facebook: / yahoofinance
LinkedIn: / yahoo-finance

[@ThePeterDislikeShow]

I bet BNPL also contributes to inflation because it increases demand when people can "afford" the payments. Not to mention the risk of default has to be rolled into the service charges.

[@lisab7815]

CEO needs to shut down Klarna! Al the BBB complaints of charges and fees and chargebacks.