• antimidas@sopuli.xyz
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    4 months ago

    Klarna 'bout to find out their business model doesn’t work as well in the US compared to the Nordic countries and EU, as

    1. People are already up to their neck in debt, putting Klarna to the back of the queue in case there’s a default
    2. Personal bankruptcy is a thing

    Especially the Northern Europe personal bankruptcy is really not a thing, fuck up your finances and you’re never going to see a penny you make (above what you strictly need to live) until everything has been paid back. Debt that is actively being collected also never expires.

    There’s a good reason Klarna’s been able to thrive in this environment – getting debt from banks is quite difficult and you have added security from the draconian collections process.

    In the US a company ignores credit scores at their own peril. The bankruptcy process is one of the few things that works better in the US than in e.g. my home country Finland.