Klarna has introduced its payment option to Google Pay, enabling users to make purchases in instalments. Klarna, a buy now, pay later lender, offers interest-free payment plans such as “Pay in 30 days” and “Pay in 3”. Late payments may incur fees, with £5 for orders over £30 and 25% of the purchase price for orders under £20. Failure to make payments on time can impact credit reports as information may be shared with credit agencies.
By demonstrating responsible borrowing behavior, like timely repayments and limited buy now, pay later usage, individuals can showcase their creditworthiness. Klarna currently serves around 12 million customers in the UK.
Raji Behal, Head of Western and Southern Europe, UK & Ireland at Klarna, expressed excitement about offering Klarna’s payment options on Google Pay. Lisa Yokoyama, Director of Product Management at Google Pay, highlighted the collaboration’s aim to provide payment flexibility to a broader audience and boost business growth.
The buy now, pay later sector will face Financial Conduct Authority regulation starting July 15, 2026. Regulations will ensure clear, upfront agreement details, affordability checks, and support for customers in financial distress. Users will have access to the Financial Ombudsman Service for complaints, and lenders must adhere to Consumer Duty rules for enhanced consumer protection standards in the UK.