According to The Kobeissi Letter, Klarna, a leading Buy Now, Pay Later service, reported a 110% increase in Q1 2025 losses, reaching -$99 million, with consumer credit losses soaring to $136 million (Source: The Kobeissi Letter, May 20, 2025). This sharp escalation in financial risk coincides with Klarna’s recent expansion of BNPL services to DoorDash orders, raising concerns about growing consumer debt and systemic risk. For crypto traders, heightened credit instability in fintech may increase volatility in digital asset markets as investors seek decentralized alternatives and hedge against potential contagion effects.