Klarna Reports $99 Million Quarterly Loss As U.S. Loan Defaults Surge + Company Now Rethinking AI Strategy & Bringing Back Human Support

Klarna Reports $99 Million Quarterly Loss As U.S. Loan Defaults Surge + Company Now Rethinking AI Strategy & Bringing Back Human Support

Buy now, pay later platform Klarna reported a $99 million net loss in Q1, more than double the $47 million loss a year earlier, as U.S. loan defaults continue to climb.

The growing financial strain has prompted the fintech giant to even reassess its AI-heavy customer service strategy.

CEO Sebastian Siemiatkowski admitted, “As cost unfortunately seems to have been a too predominant evaluation factor…what you end up having is lower quality.”

In response, Klarna is reintroducing human support, piloting an “Uber-type of setup” for remote agents. “Really investing in the quality of the human support is the way of the future for us,” Siemiatkowski said.

Despite losses, Klarna’s Q1 revenue rose 13% to $701 million, with 99 million active users.

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