The Buy Now Pay Later Takeover | No Interest
2/11/202642 min
In the early 2000s, Sebastian Siemiatkowski identified a gap in Europe’s burgeoning ecommerce market — consumers were hesitant to buy products sight unseen. Siemiatkowski’s new company would front the bill and give consumers 30 days to pay. The concept caught on and helped kick off the modern Buy Now, Pay Later industry. And after conquering Europe, Siemiatkowski’s Klarna set its sights on the U.S., determined to disrupt the credit card industry.
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Transcript preview
First 90 secondsDavid Brown· Host0:00
[music] It's winter twenty twenty-three, New York City. Thirty-four-year-old Alicia Berman is standing at the checkout counter of an upscale department store. She watches as the cashier removes the security tag from a puffy black jacket made by luxury designer Kate. Excitement hums through her. It's a fabulous jacket. She can't wait until it's officially hers. The cashier gives her a smile.
Chloe Elmore0:33
Oh, I love this piece! So chic, and you're getting a great deal. [chuckles] I know. Thank God for post-holiday sales, right?
David Brown· Host0:43
The jacket is marked down to seven hundred dollars, which is about thirty percent off. It's still expensive, but at full price, it would likely be completely out of reach for Berman. The cashier gestures to the credit card reader to Berman's right.
Chloe Elmore0:57
Go ahead and tap your card whenever you're ready. Uh, I can use Klarna, right? Sure.
David Brown· Host1:04
Klarna is a buy now, pay later app. [music] It's similar to a credit card in that Berman doesn't have to front all the money herself. Instead, Klarna will pay the department store. Then over the next two months, the app will automatically pull the money from Berman's bank account in four installments. Berman uses Klarna all the time. As a fashion magazine editor, she feels it's imperative that she dress well. Using apps like Klarna