Klarna in spotlight as Financial Conduct Authority launches crackdown on unsecured credit

Industry News | 17/09/20

“Buy now, pay later” companies such as Klarna face a crackdown by the Financial Conduct Authority as part of a sweeping inquiry into lending practices in the unsecured credit market.

Chris Woolard, the regulator’s interim chief executive, will lead a review to examine the regulation of unsecured credit before leaving next year.

His remit will include Klarna, the Swedish company that dominates the British deferred payments market and which has doubled in market value to $10.65 billion in the past year. This week it became the highest-valued financial technology company in the European Union.

Source: The Times