Swedish FinTech Klarna has said it will publish transactional data to “encourage transparency” in the credit industry.

The move comes as the company’s head of western and southern Europe accuses traditional banks and credit card companies of tricking consumers into debt. Klarna’s Raji Behal claimed that these organisations have “exorbitant interest rates” as well as hidden fees and revolving debt, with this business model failing to “work in their favour”.

The Swedish firm’s new data hub, Wikipink, reveals how UK consumers are using its credit products, including information on repayment rates, debt-collection, defaults, and consumer age demographics.

“Wikipink is not just a showcase of Klarna's achievements, but a call to action for the entire financial industry to prioritise consumer well-being over profit,” continued Behal. “By sharing our data and practices openly, we aim to inspire a shift towards more ethical, transparent, and consumer-friendly credit options.”

The company said that the hub will aid meaningful discussions on personal finance based on “facts and not opinions”.

According to the data shared by Klarna, around 95 per cent of purchases made through Klarna were paid early or on time in 2023. This contrasts with data from UK Finance which shows half of outstanding balances on a credit card incurred interest as users did not make their monthly repayments.

The data also revealed that since Klarna launched late fees in the UK in March 2023, missed payments have fallen by around 55 per cent.

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