Klarna has recently introduced its payment services on Google Pay, expanding payment options for users. Shoppers utilizing Google Pay can now opt for installment payments using Klarna, a popular “buy now, pay later” lender known for offering interest-free repayment plans like “Pay in 30 days” and “Pay in 3”.
In case of missed payments, Klarna may impose a late fee based on the order value. Moreover, failure to make timely payments could lead to negative implications on one’s credit report as information may be shared with credit reporting agencies.
By demonstrating responsible borrowing behavior, such as timely repayments and judicious use of buy now, pay later services, individuals can enhance their creditworthiness. Klarna’s services cater to around 12 million customers in the UK.
Raji Behal, the Head of Western and Southern Europe, UK & Ireland at Klarna, expressed enthusiasm about the collaboration with Google Pay, aiming to provide fair, flexible, and interest-free payment alternatives to users. Lisa Yokoyama, Director of Product Management at Google Pay, emphasized the importance of offering diverse payment options to users for enhanced flexibility and convenience.
The buy now, pay later sector will undergo Financial Conduct Authority (FCA) regulations starting July 15, 2026. These regulations will ensure that users receive transparent and upfront details about their agreements, including payment schedules, amounts due, and consequences of missed payments. Lenders will be required to conduct affordability checks and provide support to customers facing financial challenges, including directing them to debt advice services.
Users of buy now, pay later services will have the right to escalate complaints to the Financial Ombudsman Service (FOS) if they feel unfairly treated. Additionally, lenders must gain authorization from regulators and adhere to Consumer Duty rules to uphold high consumer protection standards in the UK financial sector.