Buy now, pay later firm (BNPL) Klarna will introduce a "pay now" option that lets U.K. consumers make an instant one-time payment. Klarna will introduce stronger language to make it clear to users that they're taking out a loan and will be penalized if they miss payments.
- Users can now share their income and spending data from their bank accounts to prove they're capable of making payments.
- The company also said it will introduce "stronger credit checks."
- BNPL made up 2.1% ($97B) of all global e-commerce transactions in 2020, according to Worldpay.
- In February, the U.K. Treasury said BNPL firms would be required to perform affordability checks on consumers as part of regulations it was planning to introduce.
- The U.K. has yet to officially approve any regulation for the BNPL industry.
- There are 5 million BNPL users in the U.K., with 75% of them aged between 18-36.