Swedish payments firm Klarna has announced several new changes to its products available in the United Kingdom (UK). These changes include the introduction of a “pay now” option, which allows UK customers to make immediate and full payments wherever Klarna is accepted. This brings Klarna’s offerings in the UK in line with their operations in other markets around the world.
In addition to the “pay now” option, Klarna has also implemented credit checks for its users. Shoppers can now securely share their income and spending data from their bank accounts to confirm their ability to afford future repayments. This step aims to provide consumers with more control over their payments, whether they choose to pay immediately or later.
To further support consumers, Klarna has removed late fees from its longer-term payment plans. This change is intended to alleviate financial burdens on customers and help them manage their debt more effectively.
Klarna is a major player in the buy-now pay-later (BNPL) sector, valued at approximately $46 billion. With over 90 million active users worldwide and processing 2 million transactions per day, the company has faced increased regulatory scrutiny regarding consumer debt levels and the potential risks associated with BNPL services. Other providers in the sector, such as Affirm, Afterpay, and Paypal, have also faced similar scrutiny.
With the introduction of the “pay now” option, implementation of credit checks, and removal of late fees, Klarna aims to address these concerns and empower consumers to make informed financial decisions. By making these updates, Klarna is positioning itself as a trusted and responsible player in the payments industry.
Useful Links:
– Klarna UK Website
– UK Regulation on BNPL Products
