FinTech big hitter Klarna announces new sustainability commitment
Buy now, pay later specialist Klarna is pledging 1% of the $1 billion capital it has raised to an initiative that focuses on key global sustainability challenges.
This will be formally launched on 22nd April during World Earth Day.
Klarna is also challenging other FinTechs to follow suit.
Hear more from CEO Sebastian Siemiatkowski in the below video.
The Woolard Review
Last month, Klarna responded to the publication of The Woolard Review into the unsecured credit market.
As part of the review, interest free buy now, pay later credit agreements will be regulated by the FCA, after rapidly increasing in popularity due in no small part to the coronavirus pandemic driving shoppers online.
By regulating the products, consumers will be able to seek recourse with the Financial Ombudsman Service, should they have a complaint.
Klarna said that it supported the move.
“Current regulation is nearly 50 years old, it has not kept pace with newer products and changing consumers’ needs. It's time for modernisation so it is fit for purpose,” the company tweeted.
