Klarna strengthens credit checks in the UK as regulators crackdown on ‘buy now, pay later

LONDON – Swedish tech company Klarna on Monday said it is opening up changes to its production in the UK as officials in the country are willing to abide by rules instead of a “buy now, pay later” industry.

One of the new tools used by Klarna is a solid credit rating. The company says the new device allows merchants to share revenue and use data from their currency to see if they can pay in the future. The group is voluntary, said Klarna’s spokeswoman.

Unlike banks and credit card providers, Klarna does not conduct credit tests for its customers, which means their credit history does not have to be reflected on their credit account.

Klarna says it will also alert users to be able to pay for goods at the same time, with clear language that allows users to make a loan with the company and can be penalized for loss of payment.

Klarna is one of the global brokers, later, or BNPL broker. These services allow consumers to share their purchases monthly, usually without interest. By 2020, about 97 billion e-commerce services on-air services are expected through the BNPL platform.

Major companies have entered the market, including PayPal, Square, and Mastercard.

As BNPL companies become debt collectors, fraudsters are worried that they may force people to spend more money than they can earn. Also, take care that users may lose these services on credit.

The team’s immediate survival during the coronavirus prompted authorities in the UK to anticipate open talks on its plans later this month.

Klarna CEO Sebastian Siemiatkowski agreed last month that the company could “do better” in the UK by focusing on areas other than debt.

“We still believe that in general people have to pay for what they have, but there are still times when it’s worth believing,” Siemiatkowski said Monday.

“The changes we’re announcing today mean consumers can still deal with their payments whether they pay now or pay later.”

Klarna, the leading Swedish bank, has now received $ 370,000 from customers including SoftBank of Japan, Ant Group of China, and U.S. Mayor Snoop Dogg. The company was last seen as $ 46 billion and is expected to be known in the next year or two.

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