Klarna BNPL Expands to Italian Supermarkets, Raising Debt Concerns

Since August, customers at the Roman supermarket chain Pewex have been able to make installment payments through Klarna, facilitating online and in-store grocery purchases. In September, Klarna revealed that another significant Italian supermarket chain would also be integrating this payment option. The 'Buy now pay later' (BNPL) model, which is especially favored by younger shoppers, enables interest-free payments but carries the risk of excessive debt. Established in 2005, Klarna serves 26 countries and boasts over 118 million users, handling 3.4 million transactions each day. It provides a variety of payment methods and has held a banking license since 2017. Stricter EU regulations on BNPL will take effect in November to mitigate associated risks. Klarna asserts that it conducts transaction assessments and sets borrowing limits.