Klarna's Valuation Slashed by $39 Billion Amid Fintech Rout - Slashdot

Klarna's Valuation Slashed by $39 Billion Amid Fintech Rout

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  Womp womp. Money go *poof*!

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  The headline is kind of funny, too. $39B is meaningless out of context. If Tesla or Apple lost $39B of value, well, whatever. But for these people it's like an 80% loss of value. It's probably still overvalued.

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    Probably doesn't help that Apple announced a similar BNPL scheme for Apple Pay. You can turn pretty much any purchase into a BNPL one.

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  Klarna is a toxic lending company.

  The easiest way to illustrate how evil it is is this - imagine you use it to buy $100 groceries every week. Klarna says, pay it back in 4 installments of $25 every 2 weeks. Great! But if you spend $100 on groceries the next week, now suddenly you're paying $25 every weeks since you have the first debt and now the second. Add another week and it's $50 one week and $25. Add another and it's $50 each week. And so on. Throw in some other purchases on random dates and any day

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    But if you spend $100 on groceries the next week, now suddenly you're paying $25 every weeks since you have the first debt and now the second. Add another week and it's $50 one week and $25. Add another and it's $50 each week.

    
    
    Yes, that is how this works. You bought something, you now have to pay it off. It is irrelevant if you are already paying off something else, you still bought something new which needs paid off.

    
    
    It's toxic and evil and unsurprisingly people are racking up huge debts.

    
    
    The

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      Interest rates are capped by regulation - among other regulatory policies - precisely because "dont like it dont use it" results in a society in which the people who are not responsible enough for themselves are irresponsible to such a degree that if we were not responsible *for them* in the form of consumer protection law, they would detrimentally impact the economy we have an interest in seeing operate efficiently. Sure, I suppose it annoys the libertarians who really can't handle a world that involves re

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    You think this is toxic lending? Wait until you hear about these "credit card" things where you might have to pay back more than the original price of what you bought!

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  There are a lot of reasons for this kind of activity:

  There's a lot of market pressure from competing regions for materials, goods, and services. There's significant pressure on the DeFi space regarding FinTech with some stability in NFT's.

  "ENS" from the looks keeps shifting position from a cursory search; I gave up a lot of knowledge of blockchain so that Web3 "GovTech" could survive. I call it Governance Tech since it encompasses all the technologies and supporting infrastructure that make up the Web3/