Klarna, a Swedish payments firm, has launched 'pay now' option in UK
Klarna, a Swedish payments firm, said on Monday it has made alterations to its system in the United Kingdom, including the ability for users to "pay now" and "in full."
The announcement comes as the UK is expected to introduce regulations for buy-now pay-later (BNPL) credit after the unregulated market spiked as consumers struggled during coronavirus epidemic lockdowns.
Klarna, which offers a "pay now" option, says the business, will ensure UK consumers can pay quickly and in full, wherever Klara is available. The changes in the UK will bring it in line with 20 other markets in which it operates.
The fintech firm, which allows customers to buy online through its merchant partners and pay their bills in installments through BNPL option, also introduced credit checks for its users.
The business said shoppers will be able to securely share income and spending data from their bank accounts to ensure they can afford future repayments.
"The changes we are announcing today ensure that consumers are fully in control of their payments whether they pay now or pay later," said the company's chief executive Sebastian Siemiatkowski.
The firm said it has eliminated late fees from its longer-term plans.
Klarna, which is valued at about $46 billion, is one of the world's largest BNPL players, with over 90 million active users worldwide and processing 2 million transactions a day.
Regulators are concerned that consumers do not accumulate more debt than they can handle, and the firm, along with other providers such as Affirm (AFRM.O), Afterpay (APT.AX) and Paypal (PYPL.OT).