Klarna , Afterpay and Credit Checks, page-40

It's pretty obvious isn't it? The purpose of credit checks is to "protect" the consumer - ie don't lend money to people who can't afford to pay it back and suck them into a debt spiral. Clearly Afterpay's product doesn't do this - it is the actual product design which protects the consumer. The first sign of trouble and you are banned from the service. On top of that, a significant % of first time users are actually declined at the outset.

Compare this to credit cards where "rigorous" credit checks are undertaken. Currently in Australia there is $25b in credit card debt accruing interest at exorbitant interest rates. So that's $4-5b in interest being paid by hapless punters to their predatory banks on an annual basis. This is at a time when wholesale interest rates are almost zero.

Which product do you think provides greater protection to the consumer?