Klarna has introduced its payment option to Google Pay, allowing users to pay for purchases in installments. Klarna, a popular buy now, pay later service, offers interest-free repayment plans like “Pay in 30 days” and “Pay in 3”. However, late payments may incur fees of £5 for orders over £30 or 25% of the purchase price for orders under £20. Additionally, missed payments can impact credit scores as information may be shared with credit agencies.
Repayment punctuality and responsible use of buy now, pay later services can demonstrate borrowers’ reliability. Klarna, with approximately 12 million UK customers, aims to provide fair and transparent payment options through Google Pay. Raji Behal, Klarna’s Head of Western and Southern Europe, UK & Ireland, expressed excitement about offering their payment solutions on Google Pay.
Lisa Yokoyama, Director of Product Management at Google Pay, emphasized the collaboration’s goal to offer payment flexibility to more users. The buy now, pay later sector will face increased regulation by the Financial Conduct Authority starting July 15, 2026. Regulations will ensure clear disclosure of payment terms, affordability checks for customers, support during financial challenges, and access to the Financial Ombudsman Service for complaints. Authorized lenders will also adhere to Consumer Duty rules for enhanced consumer protection in the UK financial industry.