Klarna has introduced its payment option on Google Pay, allowing users to make purchases in instalments. Klarna, known for its buy now, pay later service, offers interest-free repayment plans like “Pay in 30 days” and “Pay in 3”. Late payments may incur fees, and non-payment could impact credit reports. Klarna’s collaboration with Google Pay aims to provide convenient and transparent payment solutions to smartphone users.
Raji Behal, Klarna’s Head of Western and Southern Europe, UK & Ireland, expressed enthusiasm about offering their payment options via Google Pay, emphasizing their commitment to accessibility at all checkouts. Lisa Yokoyama, Director of Product Management at Google Pay, highlighted the partnership’s goal to enhance payment flexibility for consumers, especially with Google’s extensive daily shopping traffic.
The buy now, pay later sector will face Financial Conduct Authority (FCA) regulation from July 15, 2026, ensuring clear disclosure of payment terms, affordability checks for customers, financial assistance for those in need, and the ability to lodge complaints with the Financial Ombudsman Service. Compliance with Consumer Duty rules will elevate consumer protection standards in UK financial services.