Fueled in large part by the skyrocketing growth of buy now, pay later (BNPL) giant Klarna, the United Kingdom is expected to see its largest holiday shopping season to date as more than 17 million U.K. customers have used BNPL to make a purchase online, according to a Monday (Nov. 29) report from the BBC. 

The news comes on the heels of a recent push for BNPL regulation, according to PYMNTS. The use of BNPL has grown nearly four-fold in 2020 to 2.7 billion pounds ($3.6 billion) according to data from the Financial Conduct Authority.  

Concerned about managing debt stemming from the ease of making purchases and opting for installment payments, U.K. parliamentarian Stella Creasy earlier this month called on the government to enact legislation quickly. 

U.K. organization Citizens Advice, which helps people with debt, housing and other matters, also called for BNPL regulation, according to PYMNTS. 

Related: UK Lawmaker Calls for Urgent Regulation of Buy Now Pay Later Providers 

Gary Rohloff, co-founder and managing director of BNPL company LayBuy, told PYMNTS in a recent interview that his company is on board with regulation. However, he pointed out that the company has already implemented consumer safeguards, including credit checking consumers and assigning an affordability score before issuing credit. In addition, if installment payments are not made, the account is suspended.  

LayBuy launched its BNPL offering in the U.K. in 2019 with the ability to make payments in six interest-free installments.  

Read more: Merchant Education Key to Buy Now Pay Later Adoption in the UK 

BNPL company Klarna, which launched in the U.K. in 2014, has doubled its number of users to 15 million since early 2020. 

Last week, Klarna announced its Pay Now option had been added to its suite of U.S. payment services, in addition to the impending debut of the Klarna Card in the U.S. market, according to PYMNTS. Within the past year, the company has nearly doubled its U.S. customers to more than 21 million. 

See more: Klarna Introduces Pay Now and Klarna Card in US 



About: It’s almost go time for the holiday shopping season, and nearly 90% of U.S. consumers plan to make at least some of their purchases online — 13% more than did in 2020. The 2021 Holiday Shopping Outlook, PYMNTS surveyed more than 3,600 consumers to learn what is driving online sales this holiday season and the impact of product availability and personalized rewards on merchant preference.

Source link

Share This