Klarna tightens credit bureaus in UK before buy now and pay later rules

Texas News Today

The Klarna logo is displayed on your smartphone.

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LONDON — Swedish fintech company Klarna has more on its UK products on Monday as UK regulators prepare to tighten regulations in the fast-growing “buy now, pay later” industry. announced that it would introduce changes.

One of the biggest updates Klarna implemented is a more powerful credit check. According to the company, the new feature will allow users to share bank account revenue and spending data to determine if they can make payments in the future.

Klarna will also launch the ability for users to make instant payments through the platform, and with clear wording at checkout, users can be penalized for taking loans and non-payment to the company. Notify the user that they have had sex.

Klarna is currently one of the world’s largest pay after or BNPL operator. These services allow buyers to split their purchases into monthly installments. Usually interest free. In 2020, approximately $97 billion in global e-commerce transactions were processed through the BNPL platform.

Major companies such as PayPal, Square and Mastercard have entered the market.

BNPL companies are promoting their products as a better alternative to credit cards, but critics worry they are encouraging people to spend more than they can afford. Work. There is also a concern that users of these services may not be aware that they are in debt.

The rapid development of the sector during the coronavirus pandemic has prompted UK regulators to investigate. The UK government will announce talks on the plan later this month.

Klarna CEO Sebastian Simiatkowski admitted last month that he could “do a better job” in the UK by focusing on areas other than credit.

“In most cases, people strongly believe that they should pay with their own money, but in some cases credit makes sense,” Simiatkowski said in a statement Monday.

“The changes announced today mean consumers have full control over their payments, whether they pay now or later.”

Sweden’s regulated bank, Klarna, has raised a total of $3.7 billion from investors such as SoftBank in Japan, Ant Group in China and rapper Snoop Dogg in the United States. The company is ultimately worth about $46 billion and will be available within the next year or two.

Klarna tightens credit bureaus in UK before buy now and pay later rules

Source Link Klarna tightens credit bureaus in UK before buy now and pay later rules

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