swedish watchdog to investigate klarna bank

However, debts and repayments will only start affecting customer credit scores after 18 months, meaning the change will not have any formal impact until the end of 2023. Read more: Buy now, pay later firm Klarna launches payment card in the UK This will allow credit card companies to see transactions and debts when conducting formal checks on potential borrowers. Klarna, which has around 16 million customers in the UK, will report consumer purchases paid on time, late payments and unpaid purchases for “pay in 30” and “pay in three” orders made on or after June 1 to Experian and TransUnion. Swedish fintech Klarna will start providing information to UK credit agencies on the use of buy now, pay later services, in a move that could affect shoppers’ credit ratings from 2023. Klarna aims to become the world’s favourite way to shop, whilst maintaining safety and simplicity.Klarna will start to report the use of buy now pay later products to UK credit reference agencies from June. They have been titled as the highest valued private fintech company in Europe at USD31 billion as of March 2021.This funding round now ranks Klarna as the highest-valued private fintech in Europe and 4th highest worldwide. The company reports about 90 million active consumers which are utilized by 250,000 merchants spanning across 17 countries. Klarna also has a range of licensed banking services, such as savings and current accounts, in Sweden and Germany, with more countries to follow. Its direct-to-consumer mobile app acts as a shopping browser, where more than 20,000 retail partners are featured on the app. Klarna offers various payment solutions such as direct payments, pay after delivery options and instalment plans either as part of online retailer integration as an option at checkout on websites, and also through its app. Being one of the largest banks in Europe, Klarna was a very early mover in what is now widely called buy-now-pay-later (“BNPL”) and has built its business on the concept of giving consumers a way to buy things online without having to pay for them upfront, and without resorting to a credit card. Klarna Bank is the brainchild of founders Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson.

Swedish watchdog to investigate klarna bank