everything i have read about this company makes me wonder how they have managed to remain in business at all - ThreadSky

golikehellmachine.com • 15 days ago

everything i have read about this company makes me wonder how they have managed to remain in business at all

Reposted from Usili (Sage)

I can't believe we're going to get subprime burrito crisis.

www.ft.com/content/6c4b...

Comments

hikoukihikouki9.bsky.social•15 days ago

tbh the federal funds rate is 4.5% so I don't think they will be able to remain in business for very long lol

elkmovie.bsky.social•15 days ago

VC boardroom presentation

"And now: the future of Fintech"

Cartoon clip: "I will gladly pay you Tuesday for a hamburger today"

Thunderous applause

lzucker.bsky.social•15 days ago

hahaha I just got one of those spam texts telling me how much money I can make every day working for them in my spare time!

paulfish.bsky.social•15 days ago

Honestly, I think it’s that most the payments are due faster than with a credit card.

peark.es•15 days ago

honestly the fact that they've only got a 0.54% loss rate is pretty impressive.

golikehellmachine.com•15 days ago

particularly when you read interviews with their CEO, who is a dipshit. they must've hired well at the lower levels.

smullins3000.bsky.social•14 days ago

I never rule out that they might just be lying unless there's actual data to back it up.

jda5id.com•14 days ago

That’s my reaction to that number. They’ve defined the metric in some way that is not what anyone sentient would assume.

swolecialism.bsky.social•15 days ago

they basically own e-commerce in sweden i think, and i guess swedes are good credit risks

peark.es•15 days ago

they had a financial crisis during the early 1990s that was very much the opposite of that but I mean, mistakes made are lessons learned I suppose

eschneider.bsky.social•15 days ago

Unlimited venture capital.

herrwillhelm.bsky.social•14 days ago

Good things happen to sh**y companies.

golikehellmachine.com•15 days ago

these were the guys last week who were going on about how much their customers hated their customer service bots and how they wanted to switch to gig CSRs

kimoco.bsky.social•15 days ago

Offshore gig reps

ozmodiar.bsky.social•15 days ago

reminds me of the old SNL commercial for the bank that just makes change. "A lot of people ask us how we make any money. The answer: volume"

siebznet.bsky.social•15 days ago

I don't know why I haven't been more creative about buying things on credit that I never intend to pay for is mostly my takeaway

ijspurcell.bsky.social•15 days ago

The initial concept is terrible in its own right. "We'll sneak around credit laws so we can offer zero interest loans with no credit check. our path to profitability? we get a lot of marginally incompetent customers but no one truly irresponsible."

ianbobmorris.bsky.social•14 days ago

i never used the buy now pay later services because i would still need to pay all the money

chemotaxis.bsky.social•15 days ago

me [an investor]: i like what i am seeing here!!

amhoward.bsky.social•15 days ago

Wait till they are regulated.

nerdykris.bsky.social•15 days ago

I feel like normal people who live in the real world would look at "needs to take out a loan to buy food" as a terrible credit risk, not an untapped customer base. Like Klarna thinks giving out the loan is the entire product, and not the part where they pay it back with interest.

sameoldstory.co•15 days ago

Surely the population taking out credit to pay for their Sephora order or concert tickets is a pretty high risk group, credit-wise? And these loans are interest free if you repay them before the deadline, which is generous, so they’re actually relying on the riskier people who take even longer

bencates.bsky.social•15 days ago

A scheme to rapidly impoverish your most loyal customers and then yourself.

sameoldstory.co•15 days ago

I don’t get how it ever could make money

raphus.bsky.social•14 days ago

The idea is not to make money on interest, but rather to take a cut from the merchant for facilitating a transaction that otherwise would not have happened. Klarna gets paid by merchants to take on credit risk, so the theory of profitability is to minimize that risk.

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