Description
Klarna, founded in Sweden, has grown into one of the world’s leading BNPL and online payment platforms, serving over 150 million users and 550,000 retail partners. The company distinguishes itself by integrating sustainability tools directly into its app, such as a CO₂ emissions tracker for purchases and a "conscious shopping" dashboard. Klarna promotes its unconventional climate action strategy: instead of offsetting its emissions, Klarna invests in 'moonshot' climate projects, such as carbon storage solutions. Make of that what you will.
On the downside, Klarna’s BNPL model has been linked to financial risks for consumers, particularly through partnerships with fast fashion and delivery services, which can encourage impulsive buying and debt accumulation. The company collects extensive user data and shares it with numerous third parties, raising privacy concerns. In 2024, Klarna was fined for GDPR violations related to insufficient transparency in its privacy notices and international data transfers.
Summary
Klarna is a global payments provider and shopping assistant, best known for its "Buy Now, Pay Later" (BNPL) services. The company has made significant strides in promoting sustainable shopping by offering tools like a CO₂ emissions tracker, conscious shopping dashboards, and partnerships with environmentally responsible brands.
However, Klarna’s business model and data practices raise concerns. The company has faced criticism for encouraging overspending and for its extensive data collection and sharing practices, which include partnerships with over 600 companies for marketing and analytics.