Klarna has recently announced that it is now accessible as a payment choice on Google Pay. This development enables users of Google Pay to conveniently pay for their purchases in installments, as Klarna functions as a buy now, pay later service provider that allows customers to spread out their payments. Klarna provides interest-free repayment options on various payment plans, such as “Pay in 30 days” and “Pay in 3”.
In case of a missed payment, Klarna may impose a late fee of £5 for orders exceeding £30, or 25% of the purchase price for orders below £20. Additionally, failing to make payments on time could result in your information being shared with credit reference agencies, potentially impacting your credit report negatively.
By making timely repayments and not excessively utilizing buy now, pay later services, individuals can demonstrate their ability to borrow and repay. 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 introducing Klarna’s fair, flexible, and interest-free payment options to Google Pay users. This collaboration aims to make Klarna’s payment solutions easily accessible at every checkout point. Lisa Yokoyama, the Director of Product Management at Google Pay, highlighted the importance of empowering users with flexible payment choices, especially given the high volume of transactions on Google’s platform.
As of July 15, 2026, the buy now, pay later sector will fall under the regulation of the Financial Conduct Authority (FCA). This regulatory change mandates that users of buy now, pay later services receive clear and upfront details about their agreements, including payment schedules, amounts due, and repercussions of missed payments. Moreover, buy now, pay later providers must conduct affordability checks on customers and offer support in cases of financial hardship, such as directing them to debt advice services.
Users of buy now, pay later services will also have the option to lodge complaints with the Financial Ombudsman Service (FOS) if they feel unfairly treated. These lenders must be authorized by the regulator and adhere to Consumer Duty rules, which elevate consumer protection standards within the UK financial sector.