Klarna has recently introduced its payment option on Google Pay, allowing users to make purchases in instalments through the buy now, pay later service. Klarna offers interest-free payment plans like “Pay in 30 days” and “Pay in 3”, but late payments may incur fees. Additionally, missed payments could negatively impact credit reports as information may be shared with credit agencies.
By utilizing Klarna responsibly, individuals can demonstrate their ability to borrow and repay efficiently. With approximately 12 million users in the UK, Klarna’s Head of Western and Southern Europe, UK & Ireland, Raji Behal, expressed excitement about the partnership with Google Pay. Lisa Yokoyama, Director of Product Management at Google Pay, highlighted the aim to provide more payment flexibility to consumers, especially with the increasing popularity of online shopping on Google.
The buy now, pay later sector will face Financial Conduct Authority (FCA) regulation starting July 15, 2026. This regulation mandates clear disclosure of payment details upfront, affordability checks for borrowers, and support for customers facing financial difficulties. Users will also have recourse to the Financial Ombudsman Service if they feel unfairly treated by buy now, pay later providers, who must adhere to Consumer Duty rules for enhanced consumer protection in the UK financial services sector.