Latest news with #PayLater
Yahoo
11 hours ago
- Business
- Yahoo
Klarna CEO predicts AI-driven job displacement will cause a recession
Klarna's CEO has predicted that a recession could be around the corner as companies around the globe—including his own—reduce the headcount of well-paid, white-collar jobs and replace them with AI. Sebastian Siemiatkowski, the boss of the Swedish Buy Now, Pay Later group is once again sounding a pessimistic tone on AI's impact on the workforce. But as he embraces the potential positive effects of AI on his own bottom line, he may have to contest with the negative fallout of a company that has flirted with growing credit losses in the last year. While he admitted that 'making future statements about macroeconomics is like horoscopes,' Siemiatkowski's well-documented feelings about AI's impact on the labor market leave him making a pessimistic prediction about the economy. 'My suspicion…is that there will be an implication for white-collar jobs. And when that happens, that usually leads to at least a recession in the short term. And I think, unfortunately, I don't see how we could avoid that with what's happening from a technology perspective,' Siemiatkowski said on the Times Tech Podcast. Siematkowski has long warned of the disruptive nature of AI on the labor market, using his experience of shifting recruiting practices at Klarna to support his argument that it will replace roles. He told the podcast that the company's headcount had fallen from 5,500 people to 3,000 in the space of two years. Speaking in August last year, Siematkowski said his ambition was to eventually reduce that figure to 2,000 through workplace norms like attrition rather than by engaging in layoffs. In February last year, Klarna announced that its AI chatbot was doing the work of 700 customer service staff, previously a role filled by customer service agents working for the French agency Teleperformance. While Siemiatkowski has faced criticism for his willingness to talk about AI's disruptive potential, he indicated he felt it was more of a duty to be frank about the technology. 'Many people in the tech industry, especially CEOs, tend to downplay the consequences of AI on jobs, white-collar jobs in particular. I don't want to be one of them.' Indeed, Siemiatkowski implied that if he added up the number of employees of CEOs who had called him to ask about making 'efficiencies,' that figure in itself would make for a seismic economic event. An AI-induced recession would combine a number of brewing themes for the Swedish tech group. Siemiatkowski's comments come as the group reported widening credit losses, which rose by 17% to $136 million last year. Siemiatkowski explained the losses as a result of the group taking on more customers, naturally leading to a rise in defaults. On a relative basis, the percentage increase in defaults was small, Siemiatkowski said. The Swede added that because Klarna customers' average indebtedness was £100, they were more likely to pay back their loans compared with typical credit card debt of what he said was £5,000. The typical U.K. credit card holder has an outstanding credit balance closer to around £1,800, while in the U.S., the average is about $6,300. Regardless of the variance, Siemiatkowski says the difference means customers are more likely to pay off their Klarna debts. 'We are very unsensitive to macroeconomic shifts. We can still see them, but they're much less profound than if you're a big bank, you have tons of mortgages. And for people to really increase losses, credit losses, what has to happen is people have to lose jobs.' Despite that, predictions of mass layoffs among white-collar workers could inform higher risk for the company's credit business. While there wasn't any sign of a recession currently, Siemiatkowski did observe falling consumer sentiment, which would impact spending. Siemiatkowski's views on AI in the labor force have evolved over time. Speaking to Bloomberg in May, Siemiatowski was reported to have said the company was embarking on a recruitment drive, contrary to his previous statements about a workforce reduction. Speaking with the Times, Siemiatkowski clarified that the company needed different types of workers to handle more complex customer service requests. 'When we started applying AI in our customer service, we realized that there will be a higher value to human connection,' he said. This story was originally featured on
Yahoo
7 days ago
- Business
- Yahoo
PayPal Holdings (NasdaqGS:PYPL) Launches Physical Card For Flexible Payments Everywhere
PayPal Holdings saw a share price increase of 5% over the past month, a performance that stood out as the market overall rose by 2% during the same timeframe. The introduction of PayPal's new physical Credit card, announced on June 3, potentially bolstered this upward momentum by expanding customer payment options. Additionally, the launch of PayPal Complete Payments in Singapore supported the company's global expansion strategy. While the broader market trends suggest overall growth opportunities, these product launches would have added further weight to PayPal's favorable share price movements. Buy, Hold or Sell PayPal Holdings? View our complete analysis and fair value estimate and you decide. Find companies with promising cash flow potential yet trading below their fair value. PayPal Holdings' recent announcements, such as the launch of a new credit card and the rollout of Complete Payments in Singapore, could significantly influence its transformation into a commerce platform as outlined in the narrative. These developments expand PayPal's customer payment options and global footprint, potentially bolstering revenue and strengthening merchant relationships. The focus on personalized consumer experiences and smart wallet services aligns with PayPal's aim to enhance revenue streams beyond traditional payment processing, which is crucial given the competitive and regulatory challenges identified in the broader analysis. Over the past year, PayPal recorded a total return of 12%, including share price movements and dividends. This performance aligns with the general trends in the market, matching the US market's 11.9% rise but trailing the US Diversified Financial industry's 22% gain during the same period. Comparatively, PayPal's stock price remains below the consensus price target of US$82.32, indicating a 17.3% potential upside from the current price of US$68.05. These new initiatives may influence future revenue and earnings forecasts, especially if PayPal continues to expand its transaction volume and improve margins through enhancements such as the Buy Now, Pay Later service and other value-added offerings. Analysts project revenue growth at 5.2% per year, lower than the broader market's expected growth. Earnings are forecasted to rise to US$5.5 billion by 2028, with a profit margin increase to 14.5%. As PayPal continues implementing these changes, its relevance to the overall market expectations will remain closely watched. Nonetheless, PayPal's current stock valuation offers potential opportunities for investors to consider, provided the strategic initiatives deliver the anticipated benefits. Learn about PayPal Holdings' future growth trajectory here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:PYPL. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
CNET
7 days ago
- Business
- CNET
Klarna Launches New BNPL Debit Card That Lets You Finance on the Fly – but There's a Catch
CNET/Getty Images Klarna, a financial service best known for its Buy Now, Pay Later app, just announced it's launching a new debit card with BNPL features. "We consistently hear from consumers that they want the freedom to choose how and when to pay -- whether that's paying now with debit or spreading the cost over time," David Sandstrom, chief marketing officer at Klarna, said in the press release. This isn't the BNPL service's first foray into the cards territory. Klarna launched the Klarna Credit Card, a no-annual-fee card that works more like a charge card in 2022 and issued a US version in 2024. With its new debit card offering, users will be able to load funds onto the card and use it like a debit card, or access a Buy Now, Pay Later plan. BNPL plans are typically popular as an alternative to credit cards, but the Klarna Card seems to be combining debit, credit and payment plans into a single card. The company said in the press release that it's currently testing the product in the US with plans for a wider rollout in the US and Europe later this year. Here's what we know so far about it. How the Klarna debit card works The new product will offer a mix features of both a credit card and a debit card. You can load funds onto the Klarna Card and use it like you would a standard debit card, but you're able to select if you want to finance a purchase at the point of sale by using either Klarna's Pay in 4 or Pay Later plan. Klarna told CNET that there will be a $1-$3 charge for using Pay in 4 which will be added to your down payment. If you're going to use BNPL, I'd recommend not opting for the Pay in 4 option with the Klarna card, since others like Afterpay, Affirm and Klarna itself don't charge you money to initiate a BNPL installment plan that's paid off in four payments. Anyone can be approved for the Klarna Card and use it as a debit card without any credit check required. However, if you want to finance a purchase with a BNPL plan, you'll undergo a soft credit check at the time of purchase. That may cause a slowdown at the register, but we'll see. Klarna also confirmed your activity won't be reported to credit bureaus at this time. The Klarna Card will also work on Visa's Flexible Credential program, which allows you to save multiple forms of payment behind one credential, locked with your biometric. It acts like a payment hub with all of your eligible payment methods. Are Klarna's cash back rewards worth it? Once the card is fully released, it will offer a free tier and two paid tiers, according to the press release. The paid tiers -- Member and Plus -- will cost $3.49 and $7.99 monthly, respectively, and will include merchant discounts and cash-back rewards. Member 2.82% APY on Klarna balance 1% cash back when you pay in full with your Klarna balance 2x rewards on Pay-in-4 at non-integrated partners Plus 3.22% APY on Klarna balance 2% cash back when you pay in full with your Klarna balance 10x rewards on Pay-in-4 at non-integrated partners If you're after cash-back rewards, you don't have to pay for them. Many credit cards offer cash-back rewards for free -- as long as you pay your bill in full each month -- and some debit cards like the Discover Cashback Debit card also come with rewards for no monthly fee. Depending on the cash-back rate, the tier's fees might even wipe out any value you'd get from them. It's nice that Klarna lets you earn a fairly competitive APY on your balance -- the 3.22% APY the Plus tier offers is similar to many top high-yield savings accounts right now -- but having to pay $7.99 a month for this APY is a steep price. For reference, if you deposited $250 a month into your Klarna account and didn't spend it, you'd have $3,000 at the end of the year. You'd earn approximately $44 in interest (depending on how often it's compounded). But you'd have paid nearly $96 a year for this card. How to sign up for the Klarna debit card The company is currently trialing the Klarna debit card in the US. Once it's fully available, Klarna confirmed that you'll be able to sign up to use it immediately and won't be added to a wait list.
CNET
7 days ago
- Business
- CNET
Klarna Has a New BNPL Debit Card That Seems Like a Credit Card. Is It Worth Getting?
CNET/Getty Images Klarna, a financial service best known for its Buy Now, Pay Later app, just announced it's launching a new debit card with BNPL features. "We consistently hear from consumers that they want the freedom to choose how and when to pay -- whether that's paying now with debit or spreading the cost over time," David Sandstrom, chief marketing officer at Klarna, said in the press release. Klarna launched the Klarna Credit Card, a no-annual-fee card that works more like a charge card in 2022. It's available in other countries, and a US version was announced in 2024. However, it's waitlisted for now. With its new debit card offering, users will be able to load funds onto the card and use it like a debit card, or access a Buy Now, Pay Later plan. BNPL plans are typically popular as an alternative to credit cards, but the Klarna Card seems to be combining debit, credit and payment plans into a single card. Klarna didn't immediately respond to our questions about which purchase types can be financed and the type of interest charged. We'll update this story as we get more information. The company said in the press release that it's currently testing the product in the US with plans for a wider rollout in the US and Europe later this year. Here's what we know so far about it. How the Klarna Card works The new product appears to mix features of both a credit card and a debit card. You can load funds onto the Klarna Card and use it like you would a standard debit card, but you're able to select if you want to finance a purchase at the point of sale by using either Klarna's Pay in 4 or Pay Later plan. Klarna told CNET that there will be a $1-$3 charge for using Pay in 4 which will be added to your down payment. If you're going to use BNPL, I'd recommend not opting for the Pay in 4 option with the Klarna card, since others like Afterpay, Affirm and Klarna itself don't charge you money to initiate a BNPL installment plan that's paid off in four payments. Once the card is fully released, it will offer a free tier and two paid tiers, according to the press release. The paid tiers -- Member and Plus -- will cost $3.49 and $7.99 monthly, respectively, and may include merchant discounts and cashback rewards. If you're after cashback rewards, you don't have to pay for them. Many credit cards offer cashback rewards for free -- as long as you pay your bill in full each month -- and some debit cards like the Discover Cashback Debit card also come with rewards for no monthly fee. Depending on the cash back rate, the tier's fees might even wipe out any value you'd get from them. Anyone can be approved for the Klarna Card and use it as a debit card without any credit check required. However, if you want to finance a purchase with a BNPL plan, you'll undergo a soft credit check at the time of purchase. That may cause a slowdown at the register, but we'll see. The Klarna Card will also work on Visa's Flexible Credential program, which allows you to save multiple forms of payment behind one credential, locked with your biometric. It acts like a payment hub with all of your eligible payment methods.
Wamda
27-05-2025
- Business
- Wamda
Qatar's PayLater receives strategic investment from LuLu AI
Qatar-based fintech PayLater has secured a "strategic" investment from LuLu Alternative Investments (LuLu AI), the investment arm of LuLu Financial Holdings. PayLater, founded in 2023 by Mohammed Al-Delaimi and Khalifa Saleh Al Haroon, is the first company to be licensed by the Qatar Central Bank to offer Buy Now, Pay Later (BNPL) services, providing secure and flexible installment-based and interest-free payment options to customers. The partnership brings LuLu AI's regional scale, capital, and fintech expertise to PayLater, enabling the startup to deepen its product offering and scale operations. Press release: LuLu AI, the investment arm of LuLu Financial Holdings, has announced a strategic investment in PayLater Qatar, one of the first licensed Qatari providers of Buy Now, Pay Later (BNPL) and embedded finance solutions. This investment marks LuLu AI's first into the Qatari financial ecosystem and aligns with its broader vision of building a connected network of next-generation financial service providers across emerging markets. PayLater is a Qatar-based fintech innovator offering Buy Now, Pay Later (BNPL) solutions designed to make everyday purchases more accessible, affordable, and empowering. The company recently achieved a significant milestone by becoming the first recipient of a BNPL license from the Qatar Central Bank. 'LuLu AI is more than just an investment portfolio — we are shaping a future where financial services are intelligent, inclusive, and deeply human-centric,' said Adeeb Ahamed, Managing Director of LuLu Financial Holdings. 'Every investment we make is a step toward empowering individuals and businesses with tools that simplify life and unlock opportunity and inclusivity. PayLater embodies this ethos, and we are pleased to be part of their mission to drive accessible and responsible financial solutions.' 'This partnership with LuLu AI marks a major business milestone for us at PayLater. It's a shared belief in the future of responsible, flexible finance in Qatar,' said Mohammed Al-Delaimi, Co-Founder & Managing Director of PayLater. 'LuLu AI brings regional scale and experience, and together, at PayLater, we're committed to building solutions that empower both consumers and merchants, while reinforcing Qatar's position as a fintech hub in the region.' LuLu Alternative Investments was established to identify and back high-impact ventures that are solving real-world challenges in financial access, liquidity, compliance, and consumer experience. Its core thesis lies in leveraging capital to unlock capability — ensuring that startups have the runway to scale, the guidance to navigate regulatory landscapes, and the opportunity to collaborate across a trusted global network. By supporting firms like PayLater, LuLu AI is championing an inclusive and innovation-first approach to the digital economy.
