Klarna targets in-store payments with Klarna Card UK launch
Buy now pay later big hitter Klarna has launched its Klarna Card product in the UK.
The physical card will bring Klarna's payments experience to the in-store environment.
It launches with the FinTech venture’s Pay in 30 solution, which allows consumers to pay anytime up to 30 days after purchase, with plans to add additional payment options in the future.
Other key features include Apple Pay or Google Pay, and instant push notifications for all transactions, even if a payment is declined.
Alex Marsh, Head of Klarna UK, says: "Consumers are rejecting credit products which charge double digit interest rates while allowing repayments to be put off indefinitely.”
“For online purchases where credit makes sense, buy now pay later has become the sustainable alternative with no interest and clear payment schedules.”
“The launch of Klarna Card in the UK brings those benefits to the offline world, giving consumers the control and transparency of BNPL for all of their in-store purchases.”
Klarna Card was previously launched in Sweden and Germany, and plans are afoot to bring it to the US market.
Barclays
Last month, Barclays hit out at unregulated buy now pay later products which, it argued, could carry unintended consequences that consumers were often unaware of.
Antony Stephen, CEO at Barclays Partner Finance, said: “Our research shows that more must be done to educate consumers using unregulated BNPL products.”
“Too many people are taking out these loans without realising the impact it could have on their finances and with festive shopping in full swing, it’s important shoppers don’t run risk of signing up to agreements, which they may struggle to repay affordably in future.”
He concluded: “To protect consumers against taking on more debt than they can comfortably afford to repay, and to ensure minimum standards exist across the sector, we believe regulation should ensure all BNPL providers are required to undertake appropriate affordability assessments, consistent with those in place for other regulated consumer credit products.”
