Klarna leads way in UK buy now, pay later space

Swedish buy now, pay later specialist Klarna has six million UK customers and is adding 55,000 extra a week.

It has also signed up 10,000 retailers, including Asos and H&M. The BBC contacted Klarna and its two main rivals in the UK, ClearPay and Laybuy, who all said 2019 had been their biggest year yet on these shores.

“Two of those three main players added 3.3 million new customers to their base - meaning these products have an estimated seven million users,” the BBC said in an online article published yesterday.

"This is an interest-free credit option, so for a consumer this is a way of buying the things they need," says Gary Rohloff, Co-founder of Laybuy. “We've had families write to us thanking us for being able to afford raincoats at the start of winter because they couldn't afford to buy coats in one hit but can afford smaller payments over six weeks."

An alternative take

The buy now, pay later space is not without its critics, however. Dan Lane of Christians Against Poverty tells the BBC: "We are confident that the FCA will be keeping a close eye on these new firms, these new products and seeing how it impacts the people that will be using them. We would expect them to take action as necessary where and when they are able to if it is needed.”

"Overall, we would say to people that if you can't afford the product today - why do you think you could afford it in 30, 60 or 90 days time?" he concludes.