Klarna has recently introduced its payment services on Google Pay, allowing users to make purchases in installments. Klarna, known for its “buy now, pay later” model, offers interest-free payment options such as “Pay in 30 days” and “Pay in 3”.
In case of missed payments, Klarna may apply a late fee, varying based on the order amount. Additionally, failing to make payments can negatively impact one’s credit report as information may be shared with credit agencies.
By showcasing responsible borrowing behavior, timely repayments, and limited use of buy now, pay later services, individuals can demonstrate their ability to manage finances effectively. Klarna currently serves approximately 12 million shoppers in the UK.
Raji Behal, Klarna’s Head of Western and Southern Europe, UK & Ireland, expressed enthusiasm about the partnership with Google Pay, emphasizing Klarna’s commitment to offering transparent and convenient payment options.
Lisa Yokoyama, Director of Product Management at Google Pay, highlighted the collaboration’s aim to provide users with more payment flexibility, especially given the high volume of daily Google transactions, which can benefit businesses seeking growth opportunities.
The buy now, pay later sector is set to fall under Financial Conduct Authority (FCA) regulation starting July 15, 2026. This regulatory oversight will ensure that users receive clear and upfront details about payment agreements, including repayment schedules and consequences of missed payments.
Moreover, buy now, pay later providers will be required to conduct affordability checks for customers, offer support during financial challenges, and allow users to file complaints with the Financial Ombudsman Service (FOS) if necessary. These lenders must also adhere to Consumer Duty rules, enhancing consumer protection standards in the UK financial services sector.