Oct 18 Reuters - The Swedish payment firm Klarna announced on Monday it had introduced a number of changes to its product in the United Kingdom including the option for its users to pay now and in full.
The announcement comes as the UK is expected to introduce rules for buy-latepay-pay-later BNPL credit after the unregulated market spiked as consumers struggled during pandemic lockdowns.
The company said the pay now option will ensure that UK consumers can pay immediately and in full, wherever Klarna is available. The changes to UK will bring it in line with 20 different markets in which it operates.
The fintech firm, which allows customers to purchase online through its merchant partners and settle their dues in installments via BNPL option, also introduced credit checks for its users.
The company said shoppers will be able to securely share income and spending data from their bank accounts to confirm they can afford future repayments.
The changes we are announcing today mean that customers have fully control over their payments whether they pay now or pay later, the company chief executive Sebastian Siemiatkowski said.
The company added that it had removed late fees from its longer-term plans.
Klarna, valued at $46 billion, is among the largest players in the global BNPL Sector with over 90 million active users and processes 2 million transactions a day.
The company along with other providers like Affirm Afterpay and Paypal, have come under greater scrutiny by regulators concerned that consumers do not take on more debt than they can handle.