The Conversation article:

“Buy now pay later: Klarna is courting young shoppers with Paris Hilton and TikTok-style algorithms – here’s why it’s a problem”

The rise of Buy Now Pay Later (BNPL) credit sees around 30% of the UK population now using BNPL services. However, new marketing strategies adopted by Klarna have caused concerns around underplaying overconsuming and borrowing credit; using multimillionaire Paris Hilton as a figurehead of gratuitous overspending and employing Tiktok style algorithms to create convenient in-app personalised purchase recommendations.

Younger consumers, who can see, then buy items, borrow and owe credit in the space of just a few clicks, may not have the experience to consider borrowing more critically. Especially when the messages used to sell BNPL services are as whimsical and carefree as mindless scrolling of potential purchases, and a multimillionaire splashing cash on coffee and tiny dogs.

This creates a wicked problem as BNPL is largely unregulated in the UK, with consequences such as damaging credit ratings and becoming behind on other bills a real problem for consumers.

Link to full article