Klarna has recently introduced its payment option on Google Pay, allowing users to make purchases in installments. Klarna, a popular buy now, pay later service, enables customers to split their payments over time with interest-free repayment plans such as “Pay in 30 days” and “Pay in 3”.
Late payments on Klarna may incur a fee of £5 for orders over £30 or 25% of the purchase amount for orders under £20. Additionally, missed payments can impact credit scores as Klarna may share information with credit agencies.
By demonstrating timely repayments and moderate use of buy now, pay later services, individuals can showcase responsible borrowing behavior. 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 integration of Klarna’s payment solutions into Google Pay. Lisa Yokoyama, Google Pay’s Director of Product Management, highlighted the collaboration’s aim to offer more payment flexibility to users, enhancing the checkout experience for millions of shoppers.
Regulatory changes are on the horizon for the buy now, pay later sector, with the Financial Conduct Authority (FCA) set to oversee the industry starting July 15, 2026. Under the new regulations, buy now, pay later providers must provide clear and upfront payment details to users, conduct affordability checks, and offer support to customers facing financial challenges. Consumers will also have the option to escalate complaints to the Financial Ombudsman Service (FOS) for unresolved issues. Additionally, lenders will need to adhere to Consumer Duty rules for enhanced consumer protection in the UK financial services sector.