Ah … Interesting perspective: “spend more than I need to”. I think the time when people only bought what they needed is long gone - most of what we spend money on is stuff we WANT not stuff we need. Of course Klarna makes it easier to get stuff you want (aka stuff you don’t need). And isn’t that the point of Klarna: to help people get what they want regardless of need?
I wondered what’s the real difference between purchasing via Klarna vs credit card? It’s surely just another line of credit. Their valuation is surely tied to their accessibility (merchant take up and consumer qualification). Get a bunch of widely used merchants on board, lower the threshold for consumer qualification and suddenly you’re highly accessible.
I assume the merchant funds the interest and the admin costs (in a world of low interest rates and cashback incentivised offers that’s not so hard). Everywhere I turn I can get a discount on almost everything by buying via an intermediary that drives my business to that merchant and splits the cashback with me.
I don’t know if the consumer qualification is underwritten by the merchant or if it’s like Visa and Mastercard (each consumer qualifies their own credit line.)
With access to a large low interest credit line (my offset mortgage) Klarna doesn’t really hold much appeal for me. I’ve never been an impulse buyer - I generally put things I want in my basket and then go search for a better deal. Often I find one. Sometimes I find a review that puts me off. Sometimes I find a better/cheaper alternative. Sometimes the merchant sends me offer to incent me to complete the purchase. Often, by allowing myself to slow down the purchase, the urge to spend decays and I’ll delete it from the basket.
I’ve even experimented with gamifying the money I “save” (avoid spending) to make it more fun to not spend - which levels the playing field a little.