Klarna has introduced its payment services on Google Pay, allowing users to make purchases in instalments. Klarna, a popular buy now, pay later platform, offers interest-free payment plans such as “Pay in 30 days” and “Pay in 3”. However, late payments may incur fees, with a £5 charge for orders over £30 or 25% of the purchase price for orders below £20. Additionally, missed payments can impact the individual’s credit report as information may be shared with credit agencies.
By demonstrating responsible borrowing behavior, such as timely repayments and prudent use of buy now, pay later services, individuals can build a positive borrowing profile. Klarna boasts approximately 12 million users in the UK.
Raji Behal, Klarna’s Head of Western and Southern Europe, UK & Ireland, expressed excitement about offering Klarna’s flexible payment options on Google Pay, aiming to provide a transparent and convenient payment experience. Lisa Yokoyama, Director of Product Management at Google Pay, emphasized the collaboration’s goal of expanding flexible payment options for UK consumers and driving business growth.
The buy now, pay later industry will face Financial Conduct Authority (FCA) regulation starting July 15, 2026. This regulation requires lenders to provide clear terms upfront, conduct affordability checks, offer financial support to customers in need, and comply with Consumer Duty rules for enhanced consumer protection. Users will have the right to escalate complaints to the Financial Ombudsman Service (FOS) if they feel unfairly treated by buy now, pay later providers.