"Klarna debuted on the NYSE Wednesday with a $1.37 billion IPO, valuing the Swedish fintech company at $15 billion and underscoring the rapid rise of buy-now, pay-later (BNPL) services. But experts warn of mounting risks BNPL consumers face. LegalShield data shows nearly 40% of users don't realize BNPL will soon affect credit scores. Swedish fintech firm Klarna just made its highly anticipated debut on the New York Stock Exchange, raising $1.37 billion and locking in a $15 billion valuation."
"Although Klarna and other BNPL services are growing increasingly popular-often replacing credit cards for some younger generations-that doesn't mean they're without risks. "We're hearing story after story of people overextending themselves, juggling payments from various loan companies and banks," Rebecca A. Carter, a LegalShield provider lawyer with Friedman, Framme & Thrush, said in a statement. "What many don't realize is that if you aren't disciplined about managing the payment schedules and budgeting, it can snowball quickly into a serious financial burden.""
Klarna raised $1.37 billion in an NYSE IPO that set its valuation at $15 billion, highlighting the rapid expansion of buy-now, pay-later services. The firm serves more than 100 million users and partners with over 720,000 retailers globally. A LegalShield survey of more than 2,000 U.S. adults found roughly three-quarters use BNPL and nearly 40% of users do not realize BNPL will soon affect credit scores. BNPL options are increasingly replacing credit cards among younger consumers. Experts warn that multiple BNPL plans, poor budgeting, and missed payments can lead to overextension and serious financial burdens.
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