Klarna has introduced its payment service on Google Pay, allowing users to make purchases in installments. Klarna, known for its buy now, pay later options, offers interest-free payment plans like “Pay in 30 days” and “Pay in 3”. Late payments may incur a fee of £5 for orders over £30 or 25% of the purchase price for smaller orders.
By using Klarna responsibly, customers can demonstrate their creditworthiness. The company serves approximately 12 million customers in the UK. Raji Behal, Klarna’s Head of Western and Southern Europe, UK & Ireland, expressed excitement about offering Klarna’s payment options through Google Pay, aiming to provide convenient and transparent payment solutions.
Lisa Yokoyama, Director of Product Management at Google Pay, highlighted the partnership’s goal of providing more payment flexibility to users, especially as Google sees over a billion daily shopping interactions. The buy now, pay later industry will face Financial Conduct Authority regulation starting July 15, 2026, ensuring transparent agreements, affordability checks, and support for customers in financial distress.
Customers using buy now, pay later services will have access to the Financial Ombudsman Service for complaints and enhanced consumer protection under the Consumer Duty rules. It’s essential for lenders to adhere to regulatory standards and provide fair treatment to consumers.