The news: Klarna users in the UK can now “opt out” of using credit options as the buy now, pay later (BNPL) firm tries to mitigate consumer risks, per a press release.
Klarna CEO Sebastian Siemiatkowski tweeted the announcement and called on traditional credit providers like American Express and HSBC to follow its lead and let consumers turn off their access to credit.
The bigger picture: More UK consumers are relying on BNPL as economic headwinds batter household budgets.
Why it matters: Klarna’s opt-out tool can help mitigate some of these debt concerns and prevent consumers from spiraling further into debt.
It should also help Klarna stay one step ahead of lawmakers’ concerns as the regulatory debate heats up in the UK.
Digging deeper: To learn more about growing BNPL use and other consumer payment trends, read our UK Consumer Payment Habits report.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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