LONDON, ENGLAND - JUNE 04: Sebastian Siemiatkowski attends the official launch of the Klarna Pop-Up on June 04, 2019 in London, England.

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In April 2020, as the UK entered its first full month of COVID-19 lockdown restrictions, 31-year-old blogger and author Clare Seal was scrolling through Twitter when she saw something that she said left her “gobsmacked”. 

An ad stated that for every order made using Klarna on fashion retail site ASOS, the popular Swedish financial service would make a donation to the International Committee of the Red Cross. Klarna allows consumers to “buy now, pay later,” offering financial options such as “pay in three” where the payments are split across three months, and “pay later” which delays payment by 30 days. 

Seal runs “My Frugal Year,” the blog and Instagram account she started when faced with £27,000 ($37,198) of debt in 2019 where she chronicled her effort to get out of the red.

As someone with a close understanding of consumer debt, Seal said she found Klarna’s promotion with ASOS to be “cruel,” leading her to tweet: “At a time when financial insecurity is reigning supreme for many and the ability to fulfil the ‘pay later’ part of the BNPL bargain is shaky at best, this seems like irresponsible marketing at best, dangerous manipulation at worst.” 

Genuinely gobsmacked …read more

Source:: Businessinsider – Finance


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