Klarna has recently integrated its payment services with Google Pay, allowing users to opt for installment payments when making purchases. Klarna, known for its “buy now, pay later” model, offers interest-free payment plans like “Pay in 30 days” and “Pay in 3”.
In case of missed payments, Klarna may impose a late fee of £5 for orders exceeding £30 or 25% of the purchase price for orders below £20. Moreover, failure to make timely payments can result in negative consequences on one’s credit report as Klarna might share customer information with credit bureaus.
By demonstrating responsible borrowing behavior and using the buy now, pay later option judiciously, individuals can showcase their ability to manage debts effectively. Presently, Klarna caters to approximately 12 million shoppers in the UK.
Raji Behal, the Head of Western and Southern Europe, UK & Ireland at Klarna, expressed enthusiasm about the collaboration with Google Pay, emphasizing the enhancement of flexible and interest-free payment alternatives for users. Lisa Yokoyama, Director of Product Management at Google Pay, highlighted the expanded partnership’s aim to offer consumers diverse payment choices, aligning with the growing trend of online shopping.
The announcement coincides with impending Financial Conduct Authority (FCA) regulation of the buy now, pay later industry starting from July 15, 2026. The new regulations mandate transparent disclosure of payment terms, affordability checks for borrowers, and provisions for customer assistance in case of financial hardship. Additionally, users will have recourse to the Financial Ombudsman Service (FOS) for grievance resolution, and lenders will be held accountable to Consumer Duty rules for enhanced consumer protection standards.
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