Global competitors and barriers to entry, page-20

klarna website is rubbish. have a look for yourselves. i cant even figure out what their payment or fee structure is for merchants or for late fees etc for customers.

its all very cutesy design but the detail is so light that it would be a turn off to a potential customer i imagine.

also their list of USA partner merchants is rubbish. irs all bicycle and mattress shops etc and not a single big retailer.

considering how long they have been around, they have failed to make any impact of note in the USA or UK, so the door is wide open for afterpay to come in and blow them out of the water.

the concerns above around regulation change and the reliance on late fees for profitability are reasonable, but the reality is:
1. late fees are modest, not enough to incite any outrage in the community or send anyone into financial distress
2. 94% dont pay late fees
3. the proportion of bad debts/ defaults was down from 0.6 to 0.4% this year.