Breakingviews

Klarna rushes to self-regulate before regulation

1 minute read

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

Register now for FREE unlimited access to reuters.com

LONDON, Oct 18 (Reuters Breakingviews) - Klarna is trying to head off a crackdown by UK regulators. The Swedish buy-now-pay-later company said on Monday that it would add an option for British consumers to pay retailers in full at the checkouts on their websites. The $46 billion firm led by Sebastian Siemiatkowski will also make it clearer to consumers that buy-now-pay-later is basically credit, and strengthen its checks on whether users can meet their repayment instalments.

The cleanup comes just before the UK government sets out rules to police the sector read more . Siemiatkowski has long faced criticism that Klarna encourages customers to rack up debt. The concessions may be just enough to prevent more radical regulatory measures. However, the warnings could also discourage people from using Klarna’s buy-now-pay-later products. The sector’s rapid growth may be slowing down. (By Karen Kwok)

On Twitter http://twitter.com/breakingviews

Register now for FREE unlimited access to reuters.com

Capital Calls - More concise insights on global finance:

Supply-chain crisis may be nearing its peak read more

French vaccine maker’s gain is Britain’s loss read more

Real estate distress is tricky call read more

Xi Jinping’s COP26 no-show isn’t set in stone read more

Bank-software group defers disruption payday read more

Register now for FREE unlimited access to reuters.com
Editing Ed Cropley and Oliver Taslic

Breakingviews
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

More from Reuters