Swedish payments firm Klarna said that it has introduced a number of changes to its product in the United Kingdom. This includes the option for its users to pay now. The announcement comes as the UK is expected to introduce rules for buy-now pay-later (BNPL) credit after the unregulated market spiked. This is because of the consumers struggle during the lockdown.
The company said that the pay now option will ensure UK consumers can pay immediately and in full, wherever Klarna is available. This will be executed in 20 other markets. The fintech firm, which allows shoppers to buy online through its merchant partners, also introduced credit checks for its users. The company said that shoppers will be able to securely share income and spending data from their bank accounts. This is for confirming that they can afford future repayments.
The company’s chief executive Sebastian Siemiatkowski said that the changes they are announcing means that consumers are fully in control of their payments. They also added that it has removed late fees from its longer-term plans. Klarna is valued at about $46 billion. It is among the largest players in the global BNPL sector. It has over 90 million global active users. 2 million transactions have been processed every day. Along with other providers such as Affirm, Afterpay and Paypal, the company have come under greater scrutiny.