Klarna has recently introduced its payment option on Google Pay, enabling users to make purchases in instalments. Klarna, a popular buy now, pay later lender, allows customers to split payments without interest on various plans like “Pay in 30 days” and “Pay in 3”.
Late payments may incur fees, such as a £5 charge for orders over £30 or 25% of the purchase price for orders under £20. Additionally, failing to make payments on time could negatively impact your credit score as Klarna shares information with credit agencies.
By demonstrating responsible borrowing habits and avoiding frequent use of buy now, pay later services, individuals can showcase their ability to manage credit effectively. With approximately 12 million UK users, Klarna aims to provide fair and flexible payment solutions through Google Pay.
Raji Behal, Klarna’s Head of Western and Southern Europe, UK & Ireland, expressed enthusiasm about offering Klarna’s payment options on Google Pay, emphasizing the convenience and transparency it brings to shoppers. Lisa Yokoyama, Google Pay’s Director of Product Management, highlighted the collaboration’s goal to expand payment flexibility for users shopping on Google.
As the buy now, pay later sector prepares for Financial Conduct Authority (FCA) regulation starting from July 15, 2026, stricter guidelines will be enforced. Customers must receive clear information upfront regarding payment schedules, amounts due, and consequences of missed payments. Lenders will be required to assess customers’ repayment capabilities, offer support during financial challenges, and address complaints through the Financial Ombudsman Service (FOS).
Furthermore, buy now, pay later providers must comply with Consumer Duty rules and obtain authorization from regulatory bodies to ensure enhanced consumer protection standards in the UK financial services sector.