The article reports that Klarna’s consumer credit losses increased by 17% in the first quarter, reaching $136 million as more U.S. consumers struggle to repay BNPL loans. At the same time, Klarna solidified its market position by becoming Walmart’s exclusive BNPL provider and partnering with DoorDash, moves that raise concerns over potentially exploitative lending practices impacting financially vulnerable consumers.

In March, Walmart's fintech startup OnePay announced it would partner with Swedish firm Klarna to manage buy now, pay later loans as part of its new credit card strategy, marking an expansion of corporate financial services.

Klarna Inc spent $520,000 on lobbying activities in 2024, as reported by OpenSecrets. This expenditure reflects the company's effort to influence political decision-making through direct lobbying efforts.

Swedish Financial Supervisory Authority imposed a penalty of 500 million Swedish crowns (approximately $46M) on Klarna Bank for deficiencies in its risk assessment processes, highlighting serious lapses in due diligence on money laundering prevention. This incident, reported as part of a wider regulatory probe that concluded in March 2022, raises concerns about the bank's ethical business practices ahead of its planned U.S. IPO.

Klarna was fined $43M by the Swedish Financial Supervisory Authority for failing to comply with anti-money laundering regulations during the period April 2021 through March 2022. This failure in regulatory compliance raises significant concerns regarding the company's commitment to ethical business practices.

Sweden's Financial Supervisory Authority imposed a fine of 500 million Swedish crowns (approximately $46m) on Klarna for breaches in anti-money laundering regulations during the period from April 2021 to March 2022, citing inadequate risk assessment and due diligence.

Klarna has outlined detailed proposals for regulating Buy Now, Pay Later (BNPL) services in the United States, urging regulators to create a bespoke framework that both recognizes the differences from credit cards and emphasizes consumer protection. The initiative calls for clear, fair terms, proper disclosure practices, and robust dispute resolution measures, reflecting a commitment to safeguard consumers and promote transparent financial practices.

Klarna finalized a collective agreement with Swedish unions, Engineers of Sweden and Unionen, on November 3, 2023, to prevent a potential strike. This agreement reinforces employee rights and demonstrates Klarna’s commitment to labor welfare as it navigates preparations for a possible public offering.

Klarna announced an agreement with workers to join the Banks Employer Organisation and sign a Collective Bargaining Agreement, thus averting a planned strike and addressing concerns over worker representation.

Unionen has announced strike action against Klarna amid allegations that the company fails to involve employees in decision-making and has not established a collective agreement, reflecting poor labor relations.

Swedish unions, including Unionen and Engineers of Sweden, threatened to strike at Klarna's Stockholm head office starting November 7, following a breakdown in negotiations over a collective bargaining agreement. The unions demand more influence, stable conditions, and additional worker support, while Klarna’s CEO has expressed skepticism about the benefits of such an agreement.

In February 2021, Klarna was accused by the Swedish Consumers' Association of misleading consumers regarding its buy now, pay later services, including inadequate disclosure of risks and potential data mishandling. Swedish regulators had introduced rules to curb such practices which Klarna has been criticized for not following.