Oct. 18 (Reuters) – Swedish payments company Klarna said on Monday it had introduced a number of changes to its product in the UK, including the ability for its users to “pay now” and in full.
The announcement comes as the UK is expected to introduce rules for Buy Now Credit (BNPL) after the unregulated market peaked as consumers struggled during lockdowns from the coronavirus pandemic. Read more
The company said the ‘pay now’ option will ensure UK consumers can pay immediately and in full, wherever Klarna is available. The changes in the UK will align it with 20 other markets in which it operates.
FinTech, which allows buyers to buy online through its merchant partners and pay their contributions in installments through the BNPL option, has also introduced credit checks for its users.
The company said buyers will be able to securely share income and expense data from their bank accounts to confirm they can afford future refunds.
“The changes we are announcing today mean that consumers have full control over their payments, whether they pay now or later,” said Sebastian Siemiatkowski, chief executive of the company.
The company added that it had removed late fees from its long-term plans.
Klarna, which is valued at around $ 46 billion, is one of the largest players in the global BNPL industry with over 90 million active users worldwide and processes 2 million transactions per day. Read more
The company, along with other vendors such as Affirm (AFRM.O), Afterpay (APT.AX), and Paypal (PYPL.O), have come under further scrutiny from regulatory-minded regulators. so that consumers do not get into more debt than they can afford.
Reporting by Nishit Jogi and Aakriti Bhalla in Bengaluru; Editing by Sam Holmes
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