Shoppers have £4bn of buy now, pay later debt – The Times

Britain’s biggest consumer group has urged the government to fast-track regulation of “buy now, pay later” lenders such as Klarna after outstanding loans topped £4 billion for the first time.

Research published today said that nearly one in four adults in Britain uses loans offered at the checkout to pay for internet shopping. Which? said there needed to be credit checks and warnings about the risk of missing payments before shoppers are allowed a loan.

The research, by Credit Karma, a credit reference service, said that lenders had 11.6 million active customers in the UK. Eight million of these had balances outstanding, averaging £538 each, making £4.14 billion in total.

Klarna, a Swedish company, is by far the biggest checkout loan provider in the UK,

Leave a Reply

Your email address will not be published. Required fields are marked *