CEO Klarna defended the business despite the enormous losses and cuts.

Resistant" compared to traditional credit card companies. However, the fintech reported a loss of $748 million last year and announced last month that it would lay off about 10 percent of its 6,500 employees as part of cost-cutting efforts.

Moreover, Klarna will soon be competing with Apple in the BNPL sector after the iPhone maker announced this week that it would launch a new product called Apple Pay Later.

This puts BNPL players like PayPal, Affirm, and Klarna in an awkward position. The fear is that Apple, a $2 trillion company and the world's second-largest smartphone maker, could turn customers away from the service. Affirm shares are down 17% so far this week on the news.

"I think this is the final and massive acceptance of what I consider a much healthier form of credit," Semyatkovsky said of Apple's entry into the market. Well, tech buddies.

Klarna gives customers the option of paying for an item - they can pay in advance, in installments, or defer payment for a certain period. Critics say it allows people to buy things they might not be able to afford, though Klarna says it does accessibility checks to ensure consumers can pay for them.

In an interview with CNBC's Squawk Box Europe on Friday, the Swedish entrepreneur said that BNPL is the "superior" for the credit card model, claiming that the average Klarna consumer has a $50 balance. In comparison, the average credit card user has one outstanding balance of $5,000 or more.

Semyatkovski said his business was "highly recession-resist...