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Klarna 'Wikipink' challenges broken US credit system with transparent data
NEW YORK, April 3, 2024 /PRNewswire/ -- Klarna, the AI-powered global payments network and shopping assistant, today announced in an industry-first, the launch of a new online initiative - Wikipink - aimed at setting new standards for transparency and responsibility in the credit and lending industry. Amid growing scrutiny over the practices of credit providers and increasing credit card debt in the US, Klarna steps forward to challenge the status quo by revealing comprehensive data on its services, including repayment rates, late fee rates, and consumer age demographics, highlighting its commitment to fair and sustainable credit solutions. Additionally, Klarna commissioned The Harris Poll to conduct a survey among over 2,000 US adults to better understand how today's consumers are using credit cards to address some of the biggest misconceptions in the industry. David Sykes, Chief Commercial Officer, Klarna said: In 2023, credit card debt hit a new record high of $1.13 trillion, according to the Federal Reserve Bank of New York, with credit card interest rates peaking as high as 36%. Furthermore, the Klarna/Harris Poll survey reveals that 41% of American credit card users are revolving month-to-month, with approximately one quarter of credit card users (23%) saying they have paid their credit card late and incurred a late fee or had a credit card payment go into debt collection over the last year. In stark contrast, according to Klarna's Wikipink, 31% of Klarna's Pay in 4 users in the US paid their bills early, 65% paid on time, and only 4% incurred late fees in 2023, with overall late fee rates showing a decline over time. Klarna's global default rate stands at less than 1%, significantly lower than the delinquency rates associated with credit cards, and 99% of payments are repaid. This is a testament to Klarna's dedication to offering fair and transparent credit solutions. Wikipink and Harris Poll key findings:
Klarna's Late fee and debt collection rates are declining as a result of Klarna's rigorous process and consumer-centric business model (Wikipink), while many Americans experience financial difficulties with their credit cards (Klarna/Harris Poll):
Our late fees are significantly less than other services:
There is no typical Klarna consumer:
Consumers require more education on their credit card interest rates:
For more information, visit klarna.com/us/wikipink. About Klarna Since 2005 Klarna has been on a mission to accelerate commerce with consumer needs at the heart of it. With over 150 million global active users and 2 million transactions per day, Klarna's fair, sustainable and AI-powered payment and shopping solutions are revolutionizing the way people shop and pay online and in-store, empowering consumers to shop smarter with greater confidence and convenience. More than 500,000 global retailers integrate Klarna's innovative technology and marketing solutions to drive growth and loyalty, including H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. For more information, visit Klarna.com. About The Harris Poll The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. One of the longest-running surveys in the U.S., The Harris Poll has tracked public opinion, motivations and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing. To learn more, please visit www.theharrispoll.com. Harris Poll/Klarna Survey Methodology This survey was conducted online within the United States by The Harris Poll on behalf of Klarna between March 14-18, 2024 among 2,066 adults ages 18+, among whom 1,689 are credit card users. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected]. This information was brought to you by Cision http://news.cision.com The following files are available for download:
View original content:https://www.prnewswire.com/news-releases/klarna-wikipink-challenges-broken-us-credit-system-with-transparent-data-302107267.html SOURCE Klarna Bank AB (publ) |