What is the impact of Klarna on the conversion rates of fashion merchants and is the increased conversion rate sustainable for the long term?

The thing about buy now pay later is the advantage that they're able to show at the point of checkout that they help with conversion.

On your point about margin, if you think backward, it's because of a whole host of things that have costs in the process that are quite hard to show conversion in the same way that a buy now pay later button is.

Will the retailers themselves push back on those margins? Possibly they will, but that's more likely to happen if more buy now, pay later companies come into the market and make it a more competitive landscape.

If you look at the life cycle of a piece of clothing, let's say from the moment it gets produced, let's even ignore the returns, there is the production costs upfront, cost of designers, shipping, photography, models, look books, and so on that go into it. I would imagine that if you're looking at making tweaks and changes to save margin somewhere along the line, you probably would go to BNPL less because it's easiest to show that it's driving conversion.

I think that the idea of ubiquity really will come with more and more players coming into the market. And that will probably start to make it a bit more competitive.