[tshaddox]

Isn't the 0% APR financing essentially just a sales expense? Even if people generally don't immediately roll into another 2-year agreement, the main reason zero-interest financing works for the sellers is simply that it makes it easier for people to spend money on expensive high-margin stuff.

Multi-year zero-interest loans are also commonplace in high-price, high-margin specialty retail: think La-Z-Boy, Sleep Number, home improvement, hot tubs, home gym equipment, etc.

[paxys]

They also charge heavy interest and fees to people who miss payments, but in this case that will be captured by Klarna.

[blackqueeriroh]

Klarna does not charge interest or fees to people who miss payments.

[paxys]

https://www.klarna.com/us/help/payments/what-happens-if-i-ca...

> Late fees: what to expect > Late fees may apply if your payment isn't collected after multiple attempts:

> Pay in 4: A late fee may be charged per missed payment.

> Pay in 30 Days: Be sure to pay on time to avoid late fees.

> Pay over time: Late fees and interest may apply as outlined in your credit agreement.

Unlike what a lot of people in this country think, Klarna is not free money.

[tshaddox]

Yes, and for most of those retailers I mentioned the financing is handled by e.g. Synchrony Bank.

[maxerickson]

Probably the better way to look at it is that the finance charges are built into the price.