Tuesday, February 27, 2024

Polaris of Enlightenment

Tuesday, February 27, 2024

Polaris of Enlightenment

Klarna CEO highlights sweeping debt issue: 80% of Swedes owe money

The destruction of the European economy

Published 17 December 2023
- By Editorial Staff
Klarna CEO Sebastian Siemiatkowski.

Approximately 80 percent of all Swedish citizens have an outstanding invoice with Klarna, according to CEO Sebastian Siemiatkowski. At the same time, the total debt amount for Klarna debts with the Swedish Enforcement Authority (Kronofogden) amounts to as much as 119 billion kronor.

The number of Klarna debts that have been referred to the Enforcement Authority has increased over the past three years. Concurrently, the number of cases submitted to the authority regarding debts to the company has also risen. Today, Klarna has 47,302 cases of payment orders at the Enforcement Authority regarding outstanding claims.

– Our challenge is that Klarna has become so big in Sweden that about 80 percent of the Swedish population has an outstanding invoice with us at all times, says Siemiatkowski in tax-financed SVT’s program Ekonomibyrån (Economics bureau).

Siemiatkowski argues that stricter regulations are needed in the loan market to prevent people from ending up with the Enforcement Authority. He further states that the company has done as much as it can in terms of its responsibility, having established “solutions that are kinder to the consumer”, which means they earn less than their competitors.

– The problem is that I think we have come as far as a company like Klarna can in terms of responsibility. Now it’s time for regulations to step in, he says.

Facts: Klarna

Founded in 2005 in Stockholm, Sweden, Klarna is a prominent fintech company known for revolutionizing online payments. Established by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, it provides innovative financial services including direct payments, post-purchase payments, and a popular "buy now, pay later" option, allowing consumers to pay in installments without interest.

Klarna has become a ubiquitous presence in Swedish society, deeply integrated into the online shopping experience. It's one of Europe's largest banks and a top global fintech player, with a significant market presence in Europe and North America. Over the years, Klarna has experienced substantial growth and investment, positioning it as one of Europe's most highly valued fintech companies.


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