According to The Kobeissi Letter, Klarna, a leading Buy Now, Pay Later (BNPL) service, reported a 110% increase in Q1 2025 net losses to -$99 million, with consumer credit losses escalating to $136 million (source: The Kobeissi Letter, May 20, 2025). This significant uptick in losses highlights mounting credit risks in the fintech sector, especially as Klarna recently expanded BNPL offerings to DoorDash orders. For crypto traders, this signals potential tightening in consumer credit markets and increased volatility in fintech-related tokens, as mounting defaults could drive demand for decentralized finance solutions and stablecoins as alternative payment and lending methods.