Klarna has recently introduced its payment services on Google Pay, allowing users to make purchases in instalments. Klarna, known for its “buy now, pay later” model, offers interest-free payment plans like “Pay in 30 days” and “Pay in 3”.
In case of late payments, Klarna may impose a late fee of £5 for orders above £30 or 25% of the purchase amount for orders below £20. Additionally, failing to make payments on time could negatively impact the individual’s credit report as Klarna shares information with credit agencies.
By utilizing Klarna responsibly, making timely payments, and avoiding excessive use of buy now, pay later services, users can demonstrate their creditworthiness. With approximately 12 million users in the UK, Klarna aims to provide fair and flexible payment options through Google Pay.
Raji Behal, the Head of Western and Southern Europe, UK & Ireland at Klarna, expressed enthusiasm about the collaboration with Google Pay, emphasizing the convenience and transparency of paying through their platform. Lisa Yokoyama, the Director of Product Management at Google Pay, highlighted the expansion of payment options to UK consumers, enhancing flexibility and convenience for online shoppers.
This development aligns with upcoming Financial Conduct Authority (FCA) regulations set to govern the buy now, pay later sector from July 15, 2026. These regulations mandate clear disclosure of payment terms, affordability checks for customers, and support for those facing financial difficulties. Users will also have recourse to the Financial Ombudsman Service (FOS) in case of unfair treatment by lenders, who must comply with Consumer Duty rules for enhanced consumer protection in financial services.