Klarna has introduced its payment option on Google Pay, enabling shoppers to make purchases in installments. Klarna, a buy now, pay later service, allows customers to divide their payments. Most of Klarna’s payment choices, such as “Pay in 30 days” and “Pay in 3,” offer interest-free repayment terms.
In cases of missed payments, Klarna may impose a late fee of £5 for orders over £30 or 25% of the purchase value for orders below £20. Additionally, failing to make payments on time can result in negative effects on one’s credit report as information may be shared with credit referencing agencies.
Maintaining timely repayments and using buy now, pay later services judiciously could demonstrate responsible borrowing behavior. Klarna boasts approximately 12 million UK users.
Raji Behal, Klarna’s Head of Western and Southern Europe, UK & Ireland, expressed enthusiasm about offering Klarna’s fair and flexible payment options on Google Pay. This partnership aims to make Klarna accessible at various checkouts, enhancing convenience for millions of shoppers to make transparent and smarter payments via their mobile devices.
Lisa Yokoyama, Director of Product Management at Google Pay, highlighted the collaboration’s expansion into the UK, emphasizing the goal to provide payment flexibility to a wider audience. As Google sees over a billion daily shopping interactions, this extended partnership offers more checkout alternatives to drive business growth.
The buy now, pay later sector will fall under Financial Conduct Authority regulation starting July 15, 2026. This regulation mandates clear upfront disclosure of payment terms, due dates, amounts, and consequences of missed payments. Lenders are required to assess customers’ repayment abilities and offer support in case of financial distress, including directing them to debt advice resources. Consumers can escalate complaints to the Financial Ombudsman Service if they feel unfairly treated. Regulated lenders must meet Consumer Duty standards for enhanced consumer protection across UK financial services.
