Consumer Finance Tidbits: Issue 26-15

Research evidence excerpt

Consumer Finance Tidbits: Issue 26-15

Accessible version

Consumer Finance

Industry Overview

PGY sues KLAR over alleged trade secret misappropriation 14 June 2026

Pagaya (PGY) filed a lawsuit against Klarna (KLAR) alleging the BNPL provider Equity

misappropriated Pagaya’s AI-based POS loan underwriting technology following a multi- United States

year partnership that began in 2022. PGY alleges KLAR used the partnership to absorb Consumer Finance

and replicate its underwriting capabilities before terminating the relationship in March

2026; Klarna denies the allegations and says the lawsuit is without merit. Our take: The Mihir Bhatia

Research Analyst

dispute highlights the strategic value of proprietary underwriting in BNPL / POS lending and BofAS

could increase focus on how fintechs structure partnerships where capabilities are shared. +1 415 436 3553 mihir.bhatia@bofa.com

We note Klarna ended the agreement in March and got sued in May, we do not expect this

Matthew C. O'Neill

to have a meaningful impact on the Walmart relationship or the growth of Fair Financing, Research Analyst

based on our conversations with the Klarna. BofAS matthew.c.oneill@bofa.com

Cash App launches mobile phone service CarolineResearch AnalystLatta

Cash App announced a pilot launch of Cash App Mobile, a $40/month unlimited 5G BofAS +1 646 855 0564

phone plan MVNO running on AT&T’s network. The offering includes unlimited talk, text caroline.latta@bofa.com

and 5G data, 10GB of monthly hotspot data, and no long-term contracts or credit checks. Natalie Howe

Our take: Based on our conversations with the company this appears to be a win/win for ResearchBofAS Analyst

Cash App customers (millions of whom already use their account to pay their mobile plans) natalie.howe@bofa.com