Fintech Takes
Fintech Recap: Klarna Goes Public, Mercury Splits, and Lending…Can Hurt
Apr 9, 2025
Klarna has officially gone public, raising questions about its profitability and looming credit losses. The hosts debate the project's impact on the BNPL landscape and its strategic moves, including a partnership with Walmart. Meanwhile, tensions between Mercury and Evolv highlight issues in fintech partnerships. The conversation also tackles the often painful lessons learned in lending, illustrating the risks involved. Lastly, the growing concern over gamified investments reflects on the industry's responsibility towards consumer well-being.
01:04:25
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Klarna's recent IPO filing reveals significant consumer credit losses, raising doubts about its claims of low default rates and financial health.
- The abrupt split between Mercury and Evolv exposes operational challenges in bank-fintech collaborations, indicating potential risks for deposit management.
Deep dives
Klarna's IPO Filing and Walmart Partnership
Klarna recently filed for an IPO with an F1 form and has entered into a partnership with Walmart to provide installment loans through OnePay, which is co-owned by Walmart. The deal has been marketed as a significant shift in the buy now, pay later (BNPL) space, but the details reveal that it may not be as groundbreaking as presented. Klarna's primary revenue model has historically been based on pay-in-four transactions, not on interest-bearing installment loans, which only account for about 5% of its volume. This distinction suggests that the collaboration may not directly compete with Affirm and other established BNPL players, raising questions about Klarna's future direction and market positioning.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
