Klarna strengthens credit bureau in the UK before buying now and pays rules later

The Klarna logo displayed on your smartphone.

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London — Swedish fintech company Klarna has more on UK products on Monday as UK regulators prepare to tighten regulations in the fast-growing “buy now, pay later” industry. Announced that it will introduce changes to.

One of the biggest updates Klarna has implemented is a more powerful credit check. According to the company, the new feature will allow users to share bank account revenue and spending data to determine if they can afford future repayments.

Klarna will also launch the ability for users to make instant payments through the platform, and with clear wording at checkout, users could be punished for taking out a loan to the company and missing payments. Notify the user that they have sex.

Klarna is currently one of the largest companies in the world to pay later or as a BNPL operator. These services allow shoppers to split their purchases into monthly installments. Usually interest-free. About in 2020 $ 97 Billion Global E-Commerce Transactions Processed via the BNPL platform.

Major companies have leapt into markets including: PayPal, square When master Card..

BNPL companies are promoting their products as a fairer alternative to credit cards, but critics are concerned that they may be encouraging people to spend more than they can afford. doing. There is also concern that users of these services may not be aware that they are in debt.

The rapid growth of the sector during the coronavirus pandemic has prompted UK regulators to scrutinize. The UK Government will announce talks on the plan later this month.

Klarna CEO Sebastian Siemiatkowski said last month that the company saidI was able to do a better job“In the UK, we are focusing on areas other than credit.

“In most cases, people firmly believe that they should pay with their own money, but in some cases credit makes sense,” Siemiatkowski said in a statement Monday.

“The changes announced today mean that consumers have full control over their payments, whether they pay now or later.”

Swedish regulated bank Klarna has raised a total of $ 3.7 billion from investors, including Japanese investors. Softbank, Chinese Ant Group and US rapper Snoop Dogg.The company The final value is close to $ 46 billion It will be released next year or two years.

Klarna strengthens credit bureau in the UK before buying now and pays rules later

Source link Klarna strengthens credit bureau in the UK before buying now and pays rules later

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