Klarna, and other similar services, allow shoppers to split the cost of their purchases into multiple payments with little or no interest. Photo: Daniel Harvey Gonzalez/In Pictures, via Getty Images
When using the buy now, pay Later app, some users may encounter a new problem: Rejection.
The business models of Affirm, Klarna, and Sezzle are being challenged by higher interest rates and recession fears. These services say that they are tightening their credit standards in order to focus more on profit than growth. Customers have reported being surprised by unexpected denials of credit or reduced spending limits.