People are already up to their neck in debt, putting Klarna to the back of the queue in case there's a default

People in debt (before there is professional help) end up paying the important things first (such as rent) and then choose to pay off the debt that is most within their reach. Klarna is much more likely to be a low amount compared to their creditors.

It might be true their loans are more likely to be payed back while also they might have less to loose in case of a personal bankruptcy.

But that aside, i have no clue on whether Klarna is making a smart move. But i assume they are because companies that are both evil and stupid don't tend to come far.