The purchase now, pay later large Klarna has welcomed an investigation into its enterprise model, claiming that it’s a “healthier alternative to credit cards”.
The Monetary Conduct Authority, the Metropolis regulator, has written to deferred fee firms similar to Klarna, Clearpay and Laybuy, asking for conferences to evaluate the attainable dangers to shoppers as a part of a probe into unregulated credit score.
A letter from the FCA seen by Cash explains that the regulator is anxious in regards to the sector’s fast enlargement.
Purchase now, pay later presents a easy and fast technique of paying for items. It permits consumers to take gadgets away from a retailer and pay for them as much as three months later.
There may be typically no credit score test, so the cash owed does