Klarna rushes to self-regulate before regulation


The Klarna logo is seen in an illustration taken on January 6, 2020. REUTERS / Dado Ruvic / Illustration

LONDON, October 18 (Reuters Breakingviews) – Klarna is trying to avoid a crackdown by UK regulators. Swedish company buy now-pay-later said monday that it would add an option for UK consumers to pay retailers in full at checkouts on their websites. The $ 46 billion company led by Sebastian Siemiatkowski will also make it clearer to consumers that buy now-pay later is essentially credit, and tighten its controls over whether users can meet their repayment deadlines.

The clean-up comes just before the UK government sets rules to control the area read more. Siemiatkowski has long faced criticism that Klarna encourages customers to go into debt. Concessions may be just enough to prevent more drastic regulatory action. However, the warnings could also discourage people from using Klarna’s Buy It Now and Pay Later products. The rapid growth of the sector could slow down. (By Karen Kwok)

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Editing Ed Cropley and Oliver Taslic

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