The acquisition now, pay later massive Klarna has welcomed an investigation into its enterprise model, claiming that it’s a “healthier alternative to credit cards”.
The Financial Conduct Authority, the Metropolis regulator, has written to deferred price companies just like Klarna, Clearpay and Laybuy, asking for conferences to judge the attainable risks to buyers as part of a probe into unregulated credit score rating.
A letter from the FCA seen by Money explains that the regulator is anxious regarding the sector’s quick enlargement.
Buy now, pay later presents a simple and quick strategy of paying for gadgets. It permits customers to take devices away from a retailer and pay for them as a lot as three months later.
There may be sometimes no credit score rating check, so the cash owed does